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Mercury General Corporation Message Board

  • robsterlund robsterlund Mar 16, 2000 4:19 PM Flag

    Wow this board is quiet, come on

    people, give us something here. Some interesting rumors mabie, anything?

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    • It looks like we have finished a W-formation and are breaking through the 24-24 1/2 $ resistance. We could see 30$ ver soon.

    • While MCY's 7.3% of the market may be appealing
      to PGR, with its 2.1%, I wonder about the overlap in
      producers and the potential for PGR as an acquirer going
      forward. IMO, MCY is much more appealing to TAP, which is
      trying to re-establish a foothold in the CA market.
      Currently, there would be very little producer overlap, and
      the $900M or so would provide economies of scvale for
      operations, marketing, claims, and so on, versus growing CA
      one policy at a time and still needing a physical
      presence. Now that TAP, as a wholly owned sub. of
      Citigroup, has access to Citigroup resources (and stock) for
      acquisitions, this would be a nice fit IMO.

    • It may only be gas, but in my gut I feel the

      same way. In all seriousness, the company
      has a
      sound business model, a solid foothold
      in our most
      populous state, an aging CEO
      surely tempted to leave
      his "baby" in capable
      hands, and an
      overly-depressed price. All
      factors that play well to M&A
      frenzy. Pilgrim

    • we are going to see a merger. mcy will be taken over. the economics of it makes a great deal of sense. immediate savings in adver.,payroll, occupancy and expanded sales.

    • I don't think MCY and PGR are a good mix at this
      point although anything is possible. MCY is very old
      school in regards to underwriting standards, advertising
      costs and claims approaches. Sometimes this has become
      a big detriment to the company but overall, it had
      allowed MCY to sneak in at critical times like these to
      increase business when most carriers are raising their
      rates substantially. MCY rates continually remain very
      competitive and claims service is improving.

      Merger
      talks have swirled about for a couple of years now -
      PGR, Nationwide, Allstate, et. al. We'll see how it
      ends up.

      Good Luck all

    • Yep, I have Berkshire. Also, am an MCY holder and am comfortable with it too.

    • has anyone else heard about this PGR/MCY deal rumor? I had heard some talk about it myself but I don't know how much of it to believe. It would certainly make sense though.

    • MCY is a classic example of management from
      start-up and there is nothing wrong here. Typically such a
      group composed of "start-ups," thinks and approaches
      problems from the perspective of the three "C's": cash,
      caution and control (usually one individual, the
      principle, pushes the three C's from the top down). The C's
      work very well for those organizations that grew
      because "they offered the market (market segments) the
      lowest price for a number of years" with little or very
      poor competition. This is not the case today. What
      worked for MCY in the 80's, and 90's up to 1997 is now
      causing the decline. What is working today for MCY's
      competitors is; advertising risk via Television shorts,
      insured relationship building via claims handling, legal
      representation outside the corporate structure and
      decision-making decentralization. The group composing MCY is too
      heavy saturated via stock accumulation and future stock
      options and is therefore risk adverse. We will have to
      wait for a change in management philosophy and
      application. Next 52 week cycle 16/33.

    • Yes, we're all still out here. I'm in MCY to the
      tune of one IRA allocation, and feel downright
      comfortable with it.

      Pilgrim always counsels
      patience, perserverence, and courage. Lately value
      investors can take some encouragement from the trend. Maybe
      we have enough patience, etc.

      (Is anybody
      else out there looking at Berkshire
      Hathaway?)

      Good luck all-

      Mark

    • He still loves this stock and thinks new markets will add substantially to performance. I agree and bought some today as well as all.

 
MCY
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