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Universal Insurance Holdings Inc. Message Board

  • proforma000 proforma000 Apr 1, 2013 5:05 PM Flag

    Very accretive buyback transaction!

    All else equal, the buyback at $4.02 per share is very accretive to EPS and positive for shareholder value. If a few things go right, it's not hard to see these shares in the double-digits. JMHO.

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    • One day after they announce the buyback, the senior executives are giving themselves 850,000 free shares including 500K going to the new CEO (form 4 filings). What a deal for a guy who hasn't even been CEO for 2 months yet. Guess they couldnt stand to see all those shares sitting in the treasury.

      • 1 Reply to cliffvb
      • UVE management, listen up.

        This does not bother me, it is the cost of doing business, we have to pay the executives. However they are too short sighted, they should do that 6 months later after (1) keeping the PPS $5-7 dollars for a while, (2) then enlist a few analyst (3) blog about this dividend at moderate risk for being focused area in FL, now expanding to NC etc. (4) grow the business in top and bottom line, ....(5) naturally fund manager will own more share, now a mere 16% is very bad! THEN they can give themselves some reward, even at the same shares count, if the stock is to be $20, the return for them will be bigger!

        The Meier had to sell at $3.90/sh is a waste! He could have pocketed a bigger reward if the PPS is higher, and it can! Nothing wrong with the company, profit and dividend keep coming in.

        The effect for investor dilution is really the same, but it is more strategic and makes sense. Well, it is not perfect, I still call them short sighted, even they may run the business successfully, the immediate gratification is on the way to good judgement.!

        OK, now it is time, executive should deliver a raised expectation from me at least.

        Sentiment: Hold

    • I will be adding more shares tomorrow, it is going higher. This was a tremendous deal for shareholders. No matter what any of the naysayers here say, UVE execs have always treated us very well as evidenced by the strong dividends and rock solid financial management. This is yet another example! Cheers.

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