FNF is run rate EPS at 1.60 per share. Refinancings are booming and expected to continue. Investment portfolio should continue to benefit from improving credit markets. Most analysts have this stock taret price at 16-22. Barclays just upgraded target price by $6 from 16 to 22. Trades at book value. FNF bought Landamerica for pennies in BK, and took all their best assets, gaining loads of market share (landamerica was the 3rd largest title insurer in the US, and they essentially bought them in BK for free). They pay a 4.3% dividend yield. Why is this stock not $20? I bought a bunch at $13 or so,a nd it's now just above $14. Am I missing the big picture here?
Refinances are not booming they peaked a few months ago and are now in the tank, title insurance orders are declining (not unusual for the summer months), layoffs are again happening. Volitale Title Insurance times but FNF is a good solid company.
Finally, someone with their head on their shoulders and a clear understanding of our industry. Housing prices are dropping, our sale transactions are picking up, but at the same time, people need to realize that with the banking industry in the turmoil that it is, not every Joe out there can get a loan anymore. Things are going to tighten back up before they get better. Hold on for the ride!
I have been in and out of this stock. I am concerned this stock is not higher. All they need is volume to return and they will make $$$.
I am wondering if there is something I am missing. There are only two players in the title game now. and the companies have learned to pare down costs. This means they will be lean and mean when volumes return.
The difficulties in absorbing LFG are being down in a slow environment (this is good) and they should be ready to rock when things get better.
I think you should take a look at the claims for the answer on the stock price. They can't keep denying claims forever and sooner or later the state DOI's may have to get involved to force them to deal with it. Land America had market share but they had more than their share of claims.