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National Western Life Insurance Company Message Board

  • pmlljl pmlljl Nov 6, 2010 7:51 PM Flag

    3rd quarter report highlights

    NWLI reported that it had earned almost $15 per share for the first nine months of 2010 and that book value per share as of 9-30-10. This indicates to me that this stock is still severely undervalued. I would not want to be short this stock.

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    • I agree that NWLI is under-valued, but because they took a special charge in their 3q`09 report, most simple stock listings like Barron's and Value Line list the NWLI P/E as 12 because without any analyst coverage they simply sum the last four earnings reports. Now that the last four earnings reports sum to $18.52 (rather than $14.35), the P/E should drop. The stock is now at $177, so the precise P/E is 9.59. I agree that the book value still indicates the stock is cheap, although many of the life insurers are cheap.

      Maybe you know something I don't, but I don't think there are too many NWLI shares that have been borrowed and sold. It is one of the basic tenets of shorting that you don't want to be short a thinly traded stock, and NWLI is definitely a thinly-traded stock.

      • 2 Replies to fschwedman40
      • fschwedman:

        Regarding my comments about the short position in NWLI, I am referring to the figures provided by Yahoo. You may read this information by clicking on the "key statistics" caption in the left margin of NWLI's page. The short position is reported in the right column of the key statistics page. Yahoo reports that there were, I believe, 57k shares sold short as of October 15, 2010. I interpret that to mean 57,000 shares which I think is relatively high in relation to NWLI's average trading volume.

      • It's amazing to see that no one seems to care for a company that trades at half its tangible book value. the eps for 2010 will be around 21 bucks a share. i will not be surprised when the shares trade at 300 bucks a share in a few months.

 
NWLI
248.54+0.53(+0.21%)Jul 22 4:00 PMEDT

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