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OneBeacon Insurance Group, Ltd. Message Board

  • snogreen snogreen May 26, 2011 12:12 PM Flag

    I'm out.

    I sold all. If it goes hogher might even short some. The $1 special dividend I don't think a good idea, except for WTM. i woudl rather have seen OB buy back shares, pay down mpre debt, or expand markets. Sucking out another $95 million from theor equity will also LOWER the book value per share. OVB tends to trade just above book usualy. It is a buy at book....but when you remove 95 million of equity...I figure the book value will DROP to about $12.15 per share..from about $13.25 now. If OB is around $14.50.and you get a $1.24 special dividend....then OB will open about $13.26 on ex div date......and the BOOK value will be reduced to about $12.15.which means OB will be selling $1.10 above book. Not a horrible area/price...but OB doesn't hold too far above book usually.

    IMO? Bad move.....I would have rather seen debt paydowns, stock buybacks or business expansions.

    I'm out. I don't want the dividend. but obvioulsy WTM does! I think WTM a better buy.

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