...position. I dont know what the acquisition will bring, but STC should make money the next three qtrs, with the last two being strongest. Then, in 2012, the cost cutting measures they have taken will finally start to hit their bottom line.
So, not a bad time to enter. I was going to add if it fell back again to the mid nines, we'll see if she fall back there on some market flop.
Looks like Stewart Title is about to become smaller, leaner more unable to qualify for the bigger deals. Less losses for a smaller company. They are going to do something, who knows what to lower their production costs. With less work to do this sounds easy. Probably follow FATCO and move to India with Aisia doing their typing. Bangladesh might be a good location. Is Stewart really wants to cut costs how about moving corp to Bangladesh. Cheeper office and you get a girl too.
As long as the resale market is down there is no profits for title companies. Refi cancelations wipe out profits, tsg pays little. Commercial everybody cuts their fee. Until resales explode on the market your just wasteing your time. Oh well, if you have nothing else to do, wo cares.
Yes, but to ignore the long-term value, and the value of this franchise, it's foolish to not have at least SOME exposure here, since $9-10'ish is a very strong support level...and the days of the huge losses and title write offs are DONE. Short-term neutral...long term, strong buy.