% | $
Quotes you view appear here for quick access.

AXIS Capital Holdings Limited Message Board

  • trubulator12345 trubulator12345 Feb 8, 2010 9:02 PM Flag

    Decent looking quarter

    Looks like a prety solid quarter with some moving pieces. Of particular interest:

    - the investment portfolio appears to have cleaned up and is producing decent returns. Net realized gain this quarter is promising.

    - it appears they settled the longevity contract, so while I wish they would have stayed out of it inthe first place at least it is in the past.

    - capital management is looking pretty aggressive. Clearly rates are not high enough to justify chasing more business, so the dividend is up and stock buybacks are being aggressively done.

    This should be at least a $40 stock.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • 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...

      • 1 Reply to alnevo
      • 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.

        This is the prototypical Ben Graham cigar butt!

53.80+0.39(+0.73%)Oct 9 4:00 PMEDT