that's the thing, though... AXS and similar stocks have been undervalued for a long time. i've seen arguments about lower profitability coming up because of all the available capital chasing business. either that, or fear of a big event hitting the sector hard, i guess. the question is, how long to hold this before frustration sets in...
Don't give up too soon! Patience is the key. Think about this:
If they keep humming along with 15% ROE, with already trading beneath book, only 4 things can happen:
1. They use the extra cash and capital to fuel growth. they've shown discipline to not go after bad business so far. Pricing needs to be correct! 2. They continue with the aggressive share repurchases. I like this, as buying back a clearly undervalued stock is essentially a risk free value creator. 3. Healthy growing dividends 4. They pee on themselves and throw good money at bad business. But see 1 above.
This stock cannot continue to trade below book when it generates so much cash and earnings. What I would like to see them do though is get rid of those preferred shares. those payments are far too expensive, over 7% yield on the preferred.