1. GNW LTC business get spun off as separate company and McInery goes as the CEO of new company. Current NI and Life insurance exec becomes new CEO of what's left rather what's good about GNW. It would be double boost to PPS. Bad business and Bad CEO are eliminated!
2. GNW is bought out by hostile takeover by someone like Buffet. McInery gets the pink slip and LTC business gets sent into runoff. This time triple boost. Bad CEO gotten rid of, bad business shutdown and a new credible owner steps in to run profitable business!
You are welcome to add your own!
Profitable company selling 10% to BV. Call it insane and someone big left this week with lots of fear on Brexit. In the end it will be none event and shoved under the rug as time passes with no real consequences or repercussions!
Wonder when the selling stops. It's funny how people picked up Motley fool article on Monday with mgmt. assessment that profits margins will be lower with lower treasury yield. Funny thing is GNW has large portfolios of treasury bills with billions and billions so they are not exactly turning entire portfolio every month. Yield has to stay down for couple of years at least to have significant effect!
Technicals indicate that one should buy instead of selling here but people will be people and most likely sold on the drop instead of buying. Trading on emotion is hazardous to your health and bad for you finances as well!
2Q earnings should be good with mortgage business booming and not much losses with real estate prices way up in last 5 years. Problem has been LTC and mgmt. should have separated it 2 years ago and left it in runoff like most other insurance companies. Don't see any LTC charges in the near future, so earnings should be stellar (I.e. profit). If they just met the earnings projections, GNW is trading at P/E=3 insane. But that's how the street works!
PPS should run up to 2Q earnings in late July or 1st week of August at latest!