The question is...who the heck would sell this stock with it trading at such a huge discount to BV? I know it has had a nice run, but as others have questioned on this board, where else are you parking the $$?
we still own the stock. it's appreciated 50% since we bought it. just taking some risk down.
when rates go back up (hopefully soon), this company will be generating 40 dollars a year in earnings. that's like 3.5x our cost. this should trade at 8-9x in that environment (a few years out). we will buy more if it drops to the 190 which it can do easily given the lack of liquidity.
management is doing well even though they didn't buy back shares.
Looking at TWGP, one could wonder if NWLI reserves and accruals of DAC are conservative enough. To give others insight into TWGP, they are a commercial insurance company who had Shareholder Equity of $1B. I think 30% of that or so was in Goodwill. They alerted shareholders that they expected an under reserving charge of $100M via an 8-k about a month ago. Well, they finally let their shareholders know a few days back that the under reserve charge would be about $365M, and a goodwill charge of $215M. Hence, Shareholder Equity is now reduced by an expected $585M. Fitch downgraded them the other day, AM Best yesterday, and like NWLI, they were rated A- by AM Best. You had insider selling at TWGP at much higher prices, yet reason was given as a margin call.
TWGP looks like a disaster. The under reserving alone is terrible. And the write off of goodwill is another example of why I refuse to buy stock in companies with a lot of goodwill on their balance sheets.