I dont want to look at the pr too in depth (other than I didnt see any one time beefits at a glance) cause I gotta be at Jury Duty in less than an hour and I cant act on anything....but geeze...beat on Revenue by a bit, and really leverred the earnings up.
After looking at the presentation they put on their website a month or two back, I really got the impression this would be a 2012 story...thats when it seemed all the cost savings would come to fruition. But the flower seemed to bloom early.
Anyway, I am glad that I decided to buy a bunch back recently (as mentioned in an earlier post).
Course, I just skimmed the release, so who knows...maybe I'll come back from Jury Duty GUILTY of misterpreting earnings and get smacked.
STC buys reinsurance on large commercial risks. This is just an internal assumption. This was likely ceded as part Stewart Guaranty normal reinsurance buying. Wondering if anyone has a sense as to how much is usually retained.
More of a mixed bag...but still, overall, definitely positive. Reductions in operating expenses heartening. INCREASE in title loss provision over year ago 4th quarter not heartening. Decrease in revenues not heartening.
Huge $10 M increase in REI segment revenues over year ago 4th quarter was the most puzzling. It appears most of that dropped right to the bottom line? Puzzling.
Balance sheet as strong as ever, with significant positive cash flow generated in 2010, versus significant DRAIN in 2009. Why did they issue 660,000 shares in that lawsuit, and dilute us more? Couldn't they have paid cash?
I still anticipate continued cost improvements, and, barring anything unforeseen, a reduction of overall title loss provision in 2011. By the end of the year, the housing market should be showing signs of life, as well, which will probably make this stock all the more timely. I'm imagein we'll see a $15-20 stock in 12 months. Disappointed this was an underperformer for the last year for me...but the fact of the matter is that no major hit to the balance sheet was taken in 2010 (as some feared continued horrendous title losses), and I would be very surprised if they didn't show material positive net income in 2011.
Puzzled as to whether they are still gaining market share or not, like they were claiming, with the revenue decline at the agency level, we're seeing.
Would be nice to see more insiders come in, after this earnings release, and buy stock in the open market.
LTF, they beat revenue expectations. I'm pretty sure the decrease is an industry wide thing this qtr reflecting, among other things, the decrease in average home prices.
There was actually a great presentation on their website that was available in December or January (for a conference) which went into detail on their expectations over the next year plus, and the cost dynamics, and the 'agency changes' theyv'e been making.
I highly recommend it....although it does give the impression that 2012 is the year that STC's progress will be levered to the bottom line.