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Aflac Incorporated Message Board

  • mark_n_tam mark_n_tam Dec 3, 1997 11:39 AM Flag

    Knowing what you own

    You guys are kind of missing the point, so let me help. AFL is making money in Japan today. Not a lot, but enough. What is the economy like in Japan - I don't need to tell you. These guys have a dominant market share in the market they serve in Japan.
    They own yen based bonds, etc. and don't repatriate (sp?) earnings back to dollars. If they can make money in this type of environment, what happens when the Jap economy revives?! Think they'll pick up any bargin real estate investments as Jap banks and brokers liquidate? Ingnore the stock price (except to see how little "quick-hit" traders don't know what they own) and foucus on the company.

    Enough sermon!

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    • I'm sorry I keep sending multiple posts. I assure you, I don't mean to drill my wisdom into your head my making you read the identical message three times in a row.

    • I meant no rebuke by my last post. All I wished to say was that, contrary to what the general small investor may be led to believe, there is NO significant information gap between we little guys and the big boys. I read the AFLAC annual report by going to the local library. I also use EDGAR online. I daresay that the average analyst at a "prestigious" Wall Street firm gets his research from EXACTLY the same source.
      But don't those highly-paid anaysts get to speak to management one to one, you may ask, which would give them an insurmountable leg up? In AFLAC's case, there is no such advantage: On it's web site, the company provides a transcript from its conference calls to analysts, allowing anyone to read verbatim this so- called "privy" information.
      We should remember that when the average person is told that he simply doesn't know enough to invest successfully, the person who is giving such sage advice (usually mutual fund companies) is deriving both psychological and pecuniary advantage from telling us we are stupid.
      But enough moralizing. I joined this messgage board to hear opinions on AFLAC.

    • I meant no rebuke by my last post. All I wished to say was that, contrary to what the general small investor may be led to believe, there is NO significant information gap between we little guys and the big boys. I read the AFLAC annual report by going to the local library. I also use EDGAR online. I daresay that the average analyst at a "prestigious" Wall Street firm gets his research from EXACTLY the same source.

    • I meant no rebuke by my last post. All I wished to say was that, contrary to what the general small investor may be led to believe, there is NO significant information gap between we little guys and the big boys. I read the AFLAC annual report by going to the local library. I also use EDGAR online. I daresay that the average analyst at a "prestigious" Wall Street firm gets his research from EXACTLY the same source.

    • If AFL don't repatriate the earnings back to US $. Why the analyst adjust their estimate down for 1998 as shown in the following:

      Morgan Stanley Dean Witter said it raised its rating on Aflac Inc to outperform from
      neutral.

      -- The company is heavily exposed in Japan, but investors overreacted to Japan's recent economic problems.

      -- The 1998 earnings estimate was cut to $3.00 per share from $3.10, to reflect the yen's recent weakness against the dollar.

      • 1 Reply to wtone
      • AFLAC both repatriates excess capital to the United States (in order to take advantage of higher interest rates) and invests in Japanese bonds.

        Most analysts calculate all foreign exposure by converting foreign currency into dollars, which makes sense because it corresponds to GAAP procedures. AFLAC management, however, reports its results exclusive of foreign exchange fluctuations, which makes more sense in evaluating performance.

        For additional information on AFLAC, investors should access Worth Magazine online, and find the 1994 article on the company written by Peter Lynch.

 
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