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Fidelity National Financial, Inc. Message Board

  • topcalculator topcalculator Apr 7, 2000 10:31 AM Flag

    FNF has great internet strategy

    FNF with its newly announced internet
    relationship with nationsdata looks to participate in the
    internet in a big way and still maintain a strong balance
    sheet that other internet companies lack.

    With
    an expectation of 200 million in first year
    revenues, the new nationsdata product will exceed the
    revenues of many internet companies with loftier
    valautions.

    Plus, by owning FNF, we own the premiere title
    insurance company in the nation.

    Too good to be
    true. I see the stock moving up as analysts recalcualte
    enterprise value based on a sum of the parts.

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    • My ownership of FNF is a result of having owned
      CTZ. Any CTZ shareholder that requested 100% cash
      would have received it. Anyone requesting 100% stock
      received both cash and stock (for exact numbers check
      prior posts). I can't speak for anybody else but I
      actually purchased additional FNF shares with the cash
      portion.

      Considering that the current interest
      rate environment is unfavorable for title companies I
      wouldn't expect any of them to "surge." My own opinion is
      that all of them will quickly move upward just as
      interest rates are peaking. I've never been able to
      accurately predict short-term price movements
      though.

      Your PE comparison might depend on whether it is
      trailing or forward EPS. In any case they both seem pretty
      low. It is a safe assumption that the upcoming quarter
      will be weak relative to the previous year for all of
      the companies in the industry.

      Having been
      involved in a merger it is probable that some of the short
      interest in FNF involved arbitrage (buy the company being
      acquired and sell short the company that is the acquirer).
      We really should wait and see what the short
      interest is one or two months from now.

      Perhaps
      some of the other posters on the board will give you
      their opinion as well.

    • Thanks rrateike for the information-
      Most the
      information I was aware of but the two current questions I
      had was:

      1.Price
      Faf has been going up the
      last 3 weeks while FNF seems to be going down after
      the merger with Chi.Title.I'm assuming "some"the
      Chi.Title shareholders are selling to collect their
      "profits"?
      FNF- PE-is only 6 while FAF is 10

      Can
      you explain why FNF isn't moving after the merger
      with Chi.Title? One might think the merger completion
      would bring on a "surge" in stock price of good things
      to come from the merger of the two huge Title
      companies.Hence, the only reason I could think for the recent
      decline is the former Chi.Title stock owners are putting
      selling pressure on the stock.

      2. Could you
      explain the "HIGH" short position?
      Short Interest-
      FNF

      As of 8-Mar-2000
      Shares Short 5.41M
      Percent
      of Float 28.0%
      Shares Short
      (Prior Month)
      2.30M
      Short Ratio 15.06
      Daily Volume
      359.0K
      ----------------------------------------

      Short Interest-FAF

      As of 8-Mar-2000
      Shares
      Short 1.34M
      Percent of Float 3.0%
      Shares
      Short
      (Prior Month) 1.72M
      Short Ratio 5.84
      Daily
      Volume 230.0K

      I wonder why this is true? There
      is a "huge" difference here between FNF and FAF.


      Thanks again for the help

    • 1) Market leader

      2) Large reserve
      portfolio (contributing over $100 million in pre-tax
      earnings)

      3) Internet related businesses (if they
      work)

      NEGATIVES:

      1) Foley's involvement in non-related
      businesses.

      2) Investments in non-related businesses.

      3)
      Possibility that internet related businesses flop.

      In
      any case the title company stocks will move as a
      group. Whether up or down both FAF and FNF will move in
      the same direction. I personally believe that FNF
      offers more upside because of the internet related
      businesses.

      I also believe that FNF will be a candidate for a
      mid-cap index as it is now the industry leader.

    • are you saying that if you purchased a house you
      would not see a need for title insurance? if this were
      the case we would begin to see a number of fraudulent
      transactions.

      have you ever talked to anyone who
      actually works in the industry??? next you will be telling
      us that the product will be offered cheaper by
      internet start-up companies.

      some investors are
      attracted to companies that can consistently make $ with
      minimal risk exposure. the housing market is still doing
      well, it's the refi market that is very slow.

    • Part of the problem is there seems to be little
      or no faith in Foley being able to turn this
      combined entity into anything more than the "big deal" he
      was so hoping for once CK started to head
      south.

      Also, let's face it, the product is decidedly not sexy,
      it's tied into a volatile housing market (rates
      continue to head up), and it's only a matter of time
      before the product itself is either not required or done
      by a non-title entity. What would draw shareholders?
      ("Man, I got to get me some FNF!!!!!?)

    • but why does FNF suck, while FAF is so hot?

      Just innocently wondering,

      the REAL, original, and only Will.

    • As you can tell by the post.

      I do own some
      FAF stock but I look at FNF as more undervalued right
      now and I'm wondering why?(although I have bought and
      sold CTZ and FNF before-I'm in the title
      business).

      Therefore, I thought this board might have some
      information.I'm not some kind of FNF basher like we have "plenty"
      of at the FAF board.

    • forgive my prior two posts. I am obviously a FAF
      fanatic touter. I got carried away here on the FNF BB. I
      promise to never again post on the FNF board. I will
      restrict all my future posts, to my beloved FAF.

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