Real-time call: SKUL below $7. I figure it's worth $10-$15.
Company projects 2012 eps at $0.93, sells for around $6.60 or 7x.
They make headphones for young folks -- hitchikes on growth of mobile devices.
My last real-time call was ITIC at 42 last February (look up-thread). It's 66 now.
Recommended ITIC around 42 (check up-thread for the original post). Trading around 60; if you still have it I'd take the 60.
(Pretty much goes without saying nobody here bought any. After all, it's a butt-obvious value play and up more than 40% in 4 months. And now I see the original post has 2 stars. Still, just in case anyone blew a fuse and bought this no-brainer, consider selling now.)
I recommended ITIC on Feb 2; it closed that day at 41.22.
Now trading around 55.
Presumably nobody here bought any; this place isn't exactly a hotbed of value investing, all protestations aside.
But on the off chance that anyone did buy some, I wanted to say consider taking the 55. I'm leaning that way myself. Your look-out if you hold it from here.
Great post Astral, but I'm afraid I have to ask, why are they growing their top line so much faster than their competition, and at a time when the industry is in a bit of a slump, although I guess you need title insurance for foreclosures as well as anything else. Anyone else here remember Morley Thompson and Baldwin United? He managed to grow his top and bottom lines very rapidly in a related business, until it all turned out to be fraud.
And ... Baldwin? Related? Baldwin was a serial acquirer that took on debt to mushroom quickly. ITIC has been primarily a cash cow. Its steady growth over the years has been completely internal and self-financed, and not only are they debt-free, they have the whole share price on hand in cash and securities.
Except that both companies did grow at some point, I can't see the connection here. Was it anything more than that?
I'm afraid I don't see that big buildup in revenue just yet. Everybody's top line peaked with the peak of the housing bubble, everybody fell off after that, everybody has recovered significantly since the trough, everybody's still short of where business was at the peak.
ITIC has expanded into Texas, a pretty big state, and that could be why they're recovering a little better than others.
I don't see a whole lot of growth, and anyway I don't go out of my way to avoid companies that grow a little faster than the competition. Hadn't heard of that approach before; it's interesting. Your mileage may vary.
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ideas? i sold arr after a 1 year hold, put most of the capital into cim and the rest and ror into pnx @2. i think it still has lots of room to run, for those who can chart more than a 12 minute interval.