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Old Republic International Corporation Message Board

  • ou71764 ou71764 Mar 30, 2008 1:15 PM Flag

    Valuation

    The General Insurance division is the largest segment of ORI's revenues and profits, and it's doing very well. The whole company is selling for 1.2 times just the general insurance revenues. All the focus on the pieces with the most problems is starting to miss how valuable the best piece is. If the other segments are valued at $0 the stock price is close to fair value IMO.

    Things can get worse and the share price can go lower. It's a tough investing environment and ORI isn't out of the woods. And a prolonged recession will hurt all the divisions, including general insurance. So I'm not saying that the rebound in the share price is imminent.

    But I'm buy-and-hold, long term. On all these big dips I'm buying. When it's obvious that the worst is behind us and the analysts start issuing their buy recommendations (2009?) the share price will already be much higher than it is today (12.73). If we go lower first, and we could, I'll grit my teeth, buy more, and wait it out.

    At 12.73, the yield on the increased dividend is 5.34%. That's going to attract value investors. And that's what we need...long term holders of the stock, not traders, or people reacting to the headlines on the evening news.

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ORI
14.94+0.04(+0.27%)Aug 20 4:00 PMEDT

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