How far down is it going? Are we near the bottom now?
Hypothetically, what if earnings stay at $0.50 per quarter for a long while?? In downturns, things get tough. Everybody files claims, people sue each other, it's tough. If eps falls to $2 a year, the typical P/E for this stock has been 9 or 10, ... is $18 to $20 a possible price target? Too pessimistic?
In the teens, I think I would add shares and then hope for a real estate recovery.
astral and debaser:
I agree that the business will not go away permanently but as astral says, during a downturn it can get so tough that you think it has vanished.
I predict that real estate and home loans will continue to worsen for some time.
If it gets to $20 or below, I will be a "for sure" buyer.
Mr. Impulsive here has already started buying at $49.00 and then at $45.28. My plan is to buy more each time it drops a few bucks as long as earnings haven't gone negative. Until actual losses begin to eat into shareholders' equity, I think that the balance sheet will prop up the market cap. If it ever trades at $20 with shareholders' equity at it current level, I'll be buying seven or even eight more shares. They're good blankets in the cold LV winter even if they turn out to be bad investments.
They are still available:
I would recommend shredding them after you buy them. "Mint condition" and "no folds" certificates are poor insulators.
The bear and I won't need the quilt until we return to LV to winter there. (Alaska is warm enough in the summer that we don't need the quilt.) I just hope that nobody has stolen the quilt in our absence, but the falling ITIC share price gives me some comfort that nobody will bother. The possibility that someone will steal the quilt lining and try to glue it back together to be passed off as "mint condition" Enron certificates is a worry, though.
I am stunned to find out that I can still buy Enron stock certificates. The price shown was $86 plus $5.50 for shipping. But I believe that is just a bid in an auction. My apartment has heat and I have other blankets. Do recommend that I buy some Enron and hold it for the "yield" since it dowsn't trade on the NYSE any more, just on EBAY?
EBAY now has an offering of an Enron stock certificate along with a copy of Enron's code of ethics and a memo from Ken Lay with one bid for $.99. I would bid on that sucker if I were you. That paper shredded would be much cheaper than eider down.
My eyes are so full of tears at seeing the bid way beyond my means ($6.20) that I can hardly type this. It is a shame that the certificate will hang on some wealthy collector's wood-paneled wall when there are cold people in the world without shredded-Enron-certificate-stuffed quilts.
I know what you are saying. The current bid is now $78.00. And the Fed says there is no inflation! How can there be no inflation if worthless stock certificates go for $78?
I know Enron and Worldcom have all the cachet of being involved in truly great scandals but I guess that I will have to settle for the nuveau class of bankrupt companies relating to sub-prime mortgages. Maybe I can get some worthless stock certificates from American Home Mortgage for reasonable prices. I no that is down market but its the best I can do.
To all ITIC shareholders:
I tried to read the number of shares on the Enron stock certificate for sale on EBAY and now bid at $83. I was hoping that it was more than one share but I couldn't read it.
It would be very sad if it is just one share. That would mean that scandal plagued Enron was worth more per share than the high quality ITIC even though Enron no longer trades on an exchange, has no operations and pays no dividends. What a revolting development.
ITIC doesn't have much of a dividend ether. I think this company is run more for the benefit of the management/controlling shareholders than the other investors. I would like to see some buy backs.
If you look at ITIC's 10-q for the first half of 2007, you will see that ITIC bought back almost 30,000 shares at a cost of almost $1,500,000 in that six month period.
This management is not nearly as bad as many others when it comes to helping themselves to the company's assets. They are not perfect though.