get real interesting this year after all auto insurance companies have their new rating plans submitted and implemented on orders of the DOI. At this point one can only guess as to how all these plans will stack up against each other in the market place. Since Mercury's new business persistency credit has been instumental over the years in bringing in new revenues at high growth rates, one can only ask, how competitive will Mercury's auto rates be when the DOI's orders are fully implemented and the huge persistency credit is shelved? This will be the big question concerning Wall Street's analysis of Mercury's future growth rate in California. One thing is for sure, the actuaries at all auto insurance companies in California will be working overtime this year as they analyse the strengths and weaknesses of each others rating plan after they have been fully implemented.
i first bot this stock when prop 103 (anybody remember that one?) was enacted in 1988. i have always taken the view that the the more difficult the operating enviornment caused by the government, the more likely the competetive situation would benefit mcy. back then ocas and pgr immediatly withdrew from the state, joseph paid 45 million in103 settlements and the company never looked back. since they have no choice but to master the game in california and they have showed mastery of the game, i welcome any of these developments. mcy is sharp...they will deal with it probably better than their competition.
I too was wondering where all the posters were or have been. I expected better earnings because of PGR's recent earnings, etc. But this was quit a boost. And where all the posters. MCY has had quit a run.
I too have owned MCY since the early 90s. I too agree that MCY has a way in the Californai market. I was confused by your first post when you said "Strong Sell" and then your second post said "strong buy".
Anyway, where do we go from. I continue to like the stock in the long run. I feel prety safe with it.