"[HIG] is selling for 25. It pays a 40-cent dividend. The stock's 12-month range is 31.08 to 18.81. The company earned $1.16 in the first quarter, versus estimates of 95 cents. Hartford could earn more than $4 for the full year and at least $4.50 for 2012.
The stock is trading for 5.7 times my 2012 estimate. Book value is more than $45 a share. Hartford sells property and casualty and life insurance, and the company is 200 years old. They cut the dividend sharply during the recession but doubled it this year. It wouldn't surprise me to see it double again, to 80 cents a share. The stock yields 1.5%.
The company has $320 billion in assets, and there are 445 million shares outstanding. My target price is at least book value, and 75% above the current market value."
A Barrons plug is normally always good for a pop. However, in this case, if you read the entire article and observe his stock picking record of the prior 6 months (ouch), you would take his positive plug as a reason to sell. Not a very good record at all.
lol looking at the action this morning you may be right. I have to give it a bit more time. I see the market stabilizing this week for exp, and would assume hig makes a trip to 25 before going any lower
I agree with you this is a good company, and I have accumulated 7500 shares since 2009 panic low. However, they do not have $350B asset. $350B is on their balance sheet, but most of them are seperate account asset for liability. This is the nature of insurrance companies