Mercury General Corporation Message Board

I also think Mercury is NOW at a point worth
considering another look. I believe that Mercury is like all
Carriers with stockholders...profit first - agency force
second. You cannot blame them, can you? I also believe
they are having trouble with other states and making a
profit on commericial business remains to be seen. I
like Travelers, AIG, & Hartford, as a combination, do
to management, diversification, & long track record.
As a stockholder I am interested in profit not the
agency force...sorry. I think one the ways to maintain
profit, however, it a strong marketing system. If that is
agency or direct, then so be it. Hey "KST" and I were
just getting heated up. A great way to learn, so don't
discourage him (whoever he is).

I don't know where you live, but there were very
few auto losses from the Northridge e.q. KST is
correct, MCY is not vulnerable to cats like the other
national carriers.

I also understand George
Joseph, MCY's founder and principal shareholder will be
making a "substantial" purchase of MCY stock in the next
few weeks. Speaking for myself, I think MCY is an
outstanding buy right now. We are writing lots of new
business thanks to MCY's new advertising program. I think
the analysts will be surprised the the next 1/4 sales
numbers.

Am enjoying watching KST and BGINSURE argue their
points, like two kids each trying to out-insult each
other. Funny thing is TRV and MCY are both similar in
that they are both run by street smart owners and both
have provided their investors outstanding returns over
the past few years - and probably will for the long
run. MCY has a much more loyal agent following
however. When the chips are down, I think the MCY agents
will rally around their company and vice-versa. I'm
not sure the same can be said for Travelers, and I am
one of their largest agents. Hope you two kids keep
up the skirmish, it makes for good entertainment.

I've been reading Joel Wittenberg for the last
few years and have not gotten any bad advice yet. If
he says MCY is a great deal, then I'll be adding to
my position today seeing its pulled back another 4
points.

So automobiles don't get totaled in an earthquake or hurricane. That is news to me.

My dear intoxicated friend, your really dont have
a clue. There are thousands of stock managers that
will tell you anything to sell their product.
Did
you overlook the 1997 highest performer for the Dow
(Travelers). Did you look at the performance year to date or
are you still living in the past? Wake up and smell
the coffee, the run is OVER. Did you know that
Mercury is now trying to sell commercial insurance? Talk
about a major exposure in an area they know absolutely
nothing about! Dump this dog, while you still have some
"old money" left.

MCY has been California's fastest growing auto
insurer the past 7-8 years, writing thru independent
agents. It received a boost in profits from Prop 213,
which bars uninsured motorists from recovering damages
for pain and suffering, in 1997. Its recent weakness
is due to the last quarterly report, which showed
only 3% growth in premiums over the prior year but 33%
growth in earnings. The slowing was from increased
competition and a comparison with an outstanding 1997, when
California 1st required proof of insurance to register a
car. MCY has recently entered Florida and has signed
up 200 agents there, where a lot of its future
growth may originate. It has thrived in difficult and
highly competitive situations in California before and
will continue to do well here, but probably not as
well as in recent years. This isn't a commercial, but
check out what Joel Wittenberg is now saying about MCY
on his financial advice line at 900/454-0075...
Basically, he's calling it the best stock market buy he can
find, with a PE of around 12-13 and recent growth more
than double that level. MCY is the largest holding of
the Nicholas fund, which is highly rated, and boasts
an IBD EPS rating well above most insurers, as well
as about the highest return on equity of any
casualty insurer. It also has no exposure to major
catastrophes, because it doesn't write HO insurance. The
founder and his ex-wife own 52% of the shares and haven't
sold one.

Bginsure, I took a look at the TRV board and noticed you were conspicuously absent. I guess you really don't own any now, do you? This is the MCY board. Go haunt a board for short sellers.

Bginsure is wrong again. The main purshase was at
26. Not a bad profit for 17 months and certainly much
better than Travelers, which is the best of your lot.
The point about Travelers' departure from California
is that is couldn't make a profit when others like
MCY could, making it a poorer investment when the
market gets ugly. So, Bginsure, it's 3 strikes and
your'e out.