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First American Financial Corporation Message Board

  • nematode_speculator nematode_speculator Dec 18, 2001 6:28 PM Flag

    Buy This Stock Now!

    Well, OK, I was, uh, just funnin'. And Sonofbcc is right, there are a lot of good reasons to buy this stock now.

    I believe the long-term prospects for the business are excellent and that FAF is probably under pressure from tax loss selling at this point. After the first of the year, I expect a pop to the mid twenties. This morning's report that housing starts for Nov. are up 8% over last year shows that real estates sales should hold up reasonably well in '02.

    Note that the "Real Estate Information" business of FAF has rapidly expanding income. ($50 million in 3Q '01 vs. $20 million in '00)
    I believe that growth in this business is a long-term trend rather than for the most part tied to the refi cycle. This business alone is worth more than FAF's $1.2 market cap. The business is a high margin cash generator with little need for capital expenditures to grow the scale larger.

    By the way, this is my third time going into FAF. Over the last few years I twice bought in the teens and sold in the thirties. It is a much stronger business now than when I first owned it.

    Thanks for the comments pmlljl, yes, it really was a stupid post. Good luck too with FAF in the coming year.

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    • nematode: You outed yourself. I am glad to know it. I was worried for the sake of humanity that someone could write something so inane and believe it. I thought the investment community had learned nothing from the tech bubble. Glad to have you on board. I am back for my second go at FAF. Hope it does well for all of us in the new year.

    • Nematode -
      I like your posts. They reflect a knowledge more appropriate to an investor than a speculator. As to the parasitic nature of the other part of your ID, I am at a loss to comment. Except, it takes some degree of self-confidence to call yourself a worm. Keep up your very interesting posts.

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