I posted 12/07/05 wondering if this was a good short. I'm glad I didn't cause this stock is up around $6.00 since then.
I noticed the are based out of N.C. is then housing market going strong there because things have slowed in South Florida. Why is this Title stock performing so well?
I'll listen to any fact, or even theories as to why this stock is not heading South, I'm miffed.
I quit buying back around 43. In fact, I sold 1265 shares from my IRA at 44.98~~45.00 recently. (What clever timing I had!)
The buyers are just trying to make me look incompetent as a basher so that my employer, one of vip's big boys, will fire me. I'll really be crying when it hits 60!
Maybe we've been too flippant. Here's some decent advice instead. Take a look at the company's operating earnings and at liquid assets net of all liabilities. Look at what percentage of premiums ITIC reserves for claims, and compare that to other title insurers. Also take a look at what happened to ITIC in the early '90s when the last real-estate boom collapsed. How hard-hit were they? (To answer that last one, you'll have to get pre-EDGAR annual reports. Call the nice investor relations lady at ITIC and she'll mail you copies of everything.)
If you see a good target for shorting, then short away.
I have to agree with Astral. $32/share of assets (mostly liquid) after subtracting out liabilities. And then, annualizing the first 9 months of 2005, they have $5.10/share of earnings. In other words, trading at 3.5x current earnings. On top of that, surprisingly strong profitability through low points in the title insurance cycle when everyone else loses money (there are A.M. Best reports publicly available on the industry that can be found through google searches). Finally, there is an authorized buyback for 25% of the float.
Not sure why anyone would short this.
No I was not short anything. I was just giving you guys a hard time about your incompetent bashing.
I do bash SFP on a fairly regular basis but I have not been short on it. I never had much luck shorting, so I rarely do it. Shorting rarely works in a strong market. And there is a lot of money around today. There also are lot of people who don't know what they are doing.
"there is a lot of money around today. There also are lot of people who don't know what they are doing."
Ain't it the truth. I'm no pro myself, but sweet gibbering Jesus, even I can see that treasurys will kick the living