LPHI released preliminary earnings for the fiscal year and fourth quarter, ending February 28, 2009. They anticipate a 46% increase in net earnings of $27.4 million compared to $18.8 million for the previous year. Revenues for the year are expected to be $103.6 million, a 43% increase over the $72.6 million reported for last year. For the quarter, the company expects to report earnings of $7.2 million on revenues of $26.3 million compared with $4.5 million on $18.1 million for the same period last year.
What is holding it back is potential or real fraud. They have margins that are at least double other brokers. They have no technological advantage wo they must be screwing the policyholders or getting policies from people who don't shop them. Or...the policyholders don't care what they get since they never bought insurance for legit reasons.
How can they have such a large increase in policy size settled? How come they are never seemingly in competition with any other broker? Why are they getting 15%+ of the face amount when the industry standard is 6%? Something is very wrong here. Either they are laundering money in some way, or they are screwing individual investors in a Ponzi scam, or they simply have unsustainable margins. Wither way, this is bogus.
LPHI has been a great "alternative investment" over the past 4-5 years (despite its recent pullback.) A company growing at 40+%/year in earnings and revenues and selling as 12x earnings is a no-brainer ---- BUY ! Disclaimer - I own this stock !