How can someone screw a company up so bad in such a short amount of time? This has got to be dealt with at some point because I would think the board is being negligent in leaving this CEO and CFO in this position much longer.
If their motive is to crash and burn this company then buy it back from the ashes than they are well on their way.
Let me ask the message board members if anyone thinks that there is a class action when they are given a buyout offer buy Homeowners Choice and they say this bullsh!t and pass...
"We believe the proposal substantially undervalues the assets and earnings potential of 21st Century," said Bruce Simberg, Chairman of the Board of Directors. "The proposal does not take into account the premium growth initiatives that the company has already started to implement, including our recently announced premium rate increases, our continued multi-state diversification into additional lines of insurance, and our improved investment portfolio management, which we expect will result in sustainable future profits. We are pleased to also announce that we have recently received approval from the Florida Office of Insurance Regulation to assume up to 45,000 additional policies from Citizens Property Insurance Corporation, with no more than 15,000 during the month of December. We strongly believe that our standalone strategic plan offers greater value for our shareholders."
In reaching its conclusion, 21st Century's Board of Directors thoroughly reviewed and carefully considered the proposal with its independent financial advisors and legal counsel. The Board of Directors unanimously concluded that the proposal fails to be competitive with the strategic plan and initiatives the company has developed to generate significant growth in top-line revenue and bottom-line net income, which it believes will increase value for the company's shareholders.
The company also announced today that its Board of Directors has unanimously approved a stock repurchase program that authorizes the purchase by the company in the open market, from time to time, of up to $4 million worth of the company's common stock.
Michael H. Braun, Chief Executive Officer of 21st Century Holding Company, said, "We believe that today's announcement of a share repurchase delivers significant value to shareholders and demonstrates the Board's confidence in the company's future performance. We are facing a difficult economic environment that is affecting the industry as a whole. 21st Century, despite improved gross written premium and improved investment income and gains, still faces some challenges that will affect profitability in the near-term due to reinsurance costs and wind mitigation credits. While 21st Century will not report profits in the 3rd or 4th quarters of 2009, we anticipate returning to profitability thereafter. We believe that pursuing 21st Century's existing strategic growth plan will enable our shareholders to realize the inherent value of the company."
Following is the text of a letter from Mr. Simberg to Homeowners Choice Board Chairman Paresh Patel, communicating the decision of the Company's Board of Directors: