Also new info released regarding more losses for Allstate
Governors of three states have declared it a tropical storm, NOT hurricane, thus lowering their deductable, which means more payout to Allstate's policy holders. Plus, water damage has to be paid out for all the BUSINESSES damaged, structural and monies lost in spite of what people think. Plus, think about all of the cars damaged that will need to be replaced. When the full extent of the financial devastation is finally calculated and losses incurred by Allstate, this stock is going to drop like a rock. Who in their right mind would want to hold/buy this ticking time bomb.
Yeah, I'm an idiot for shorting this stock last week and making a ton of cash and your the smart one staying in and losing your #$%$. You'll soon be joining the cowboy who plays guitar in his underwear on the corner, because staying long in this stock and you'll be in your underwear.
In a water event like this cars are always loss leader for carriers. There will be mostly totals. I don't think the reclassification of the storm is a major deal. Sandy was not a big wind event and most of the losses will be water which is not covered under the Homeowner policy.
But, businesses are covered for water damage. There are plenty of businesses along the North Eastern shore. Also they are covered for revenue lost during the interruption of their business too. They won't be open anytime for business and the bill will goes up every minute. This alone will be in the hundreds of millions. Lot's of people are over looking these two key issues. NY governor has also thrown out the deductibles that need to be met, that will also cause Allstate greater payouts. All other governors will soon follow. Costing Allstate even more $$$. These are 3 huge issues that haven't really been discussed/released in full detail to the public.