Reduced Seasonal Disaster Risk Exposure, Reduced Position To 25% Of Max.
This was the highest target area given in the slow sell before the hold mentioned after the drop. Further selling here is an option as is holding due to another high yield build up on the remainder over the course of sales gains.
Additionally worth mentioning...
While Allstate has stated that the share buying program is again successful (as is always claimed) and has raised the book value, the general rise in the market and temporary easing of the situation in Europe has had more to do with capital gains oppertunities than any other factor besides lower catastrophy losses than what otherwise coulh have also possibly occurred during the quarter.
Allstate may again be tempted to even raise the dividend.
It should be remembered however that Allstate recently raised the dividend and funded the stock buying program with borrowed money after burdening the treasury to complete the payment settlement for buying e-surance assets in the wake of record disaster losses.
Now arranging further borrowing, I would caution that Allstate cannot continue to borrow it's way to prosperity. It does not work in Chicago, Illinois, The United States and it won't work for Allstate.
Sentiment: Re-Accumulate At A Discount During Hurricane Season
Barring the unforseen, I re-iterate a 2014 $39 target for Allstate unless interest rates go unchanged because of the unemployment rate remaining over 7.5% .