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Investors Title Co. Message Board

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  • astral_tsar astral_tsar Jan 28, 2005 6:30 PM Flag

    Heading Down!

    That would be best of all. The older I get, the less willing I feel about pay taxes just to roll over a perfectly good position.

    Since I've been bashing on ITIC's price a bit, lemme counter with some pumping along those lines. Since at least 1980, ITIC's EPS have grown around 14% per year. If that 14% growth continues for five more years but then levels off forever, then earnings will grow from the recent $4/share (or so) to nearly $8/share. During the same five years, cash and securities beyond liabilities will grow, say from the current $25 or so to $50+. Then the value of the stock in early 2010, assuming no further growth, will be at least $8 x 10 + $50 = $130/share. It's not necessarily gonna happen that way, but I think it's more likely than not. Anyway it's probably my best chance at getting that 250% to 300% return over a 5-year period. If I need cash I can borrow it. Even the taxman doesn't consider borrowing to be income :-)

    Yet :-O

    (Those are 2010 values, not present values, of course. If we discount that back to the present at 7% per year, we get $93 present value.)

 
ITIC
98.16-1.18(-1.19%)Jul 25 4:00 PMEDT