"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 shit out of Google over 5-10 years. The yield is almost 4x fer crying out loud. Oh well.
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.
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.
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.