They've already extended tendrils into Ariz. and Tx, I understand with some success. they are doing it in small concentrations (scattered) and wait until one seems a success before increasing that inroad.I think I read this some months ago either in an article in Comsumers Report or a Prudential recommendation
I've got this vision of the stock falling back to 35 and lingering in this area until GJ gets an offer at 50. Depending on the time horizon this could be lucrative. Thoughts? How long before you think they're acquired? If the claims turnover is anything close to what is represented by some, it would seem difficult to maintain the engine for ongoing profitable growth.
Given everything that has occurred recently, I would agree MCY would be a much better TO candidate at 35 now... than it was at 20 two years ago. I'm not sure it will see 35 soon. It might be viewed as a safe ins. sector stock and climb to previously unseen hieghts.
Who do you see as a buyer? My guess would be Travelers. What is Travelers attitude toward CA?
Good Lord! Where are you getting your data from? The "engine" continues to be in super shape. Have we not heard your "dooms day" chat before? Where are your data for "turn-over" for the industry in general and Southern California in particular? Where are you data for "turn-over" in other industries in Southern California? Let's face it, with jobs getting more difficult to obtain we will start to see less and less turn-over. The recession will make some of the folks actually LOOK like loyal employees.