NHF looking more interesting by the day. Dondero and Highland keep buying shares. Hopefully that is a good sign, but they are getting killed in the short term. If NHF can maintain the monthly dividend I think things will be okay over time.
Haha spoke too soon! Takes about 10k shares to wipe out all of our recent gains.
I like the dividend and strategy here, but it is so small that I'm not sure about the long-term.
Think that is old news. Company maintains that they have no business entity in Brazil so there is no recourse.
However, NWLI did announce in their last 10-Q that a prosecutor in Texas (district court, I think) has opened an investigation, something to do with Brazil. They provided no other information. So that, along with low interest rates, a management that refuses to allocate capital appropriately and who totally ignores the public shareholders, is holding the stock back.
They run a good company, BUT....
With the stock at 55% of (stated) book value they refuse to buy back shares.
They pay a whopping 36 cents per share annual dividend which translates to about a .15% yield, which is ridiculous. And they refuse to raise the dividend.
The management pays themselves very well and they get plenty stock options.
NWLI is run as a private company which benefits the management and board but does absolutely nothing for public shareholders.
A while back Third Avenue, a big value shop, finally liquidated because of the issues described above.
ANAT, a sister company run by the same Moody family, is a similar situation but at least they pay about a 3% dividend (but they have not raised in 7 or 8 years).
The only glimmer of hope is that the CEO (I call him Capt. Hoarder) seems to be giving up the CEO role as he is getting older (about 80 I believe). One could only hope things will somehow change for the better.
Yeh it's so tiny it doesn't make much sense to be a stand-alone entity. The only other option would be to sell to another smaller firm which is looking to get bigger and diversify. Might be worth more than 1x book value.
Earnings of 32 cents per share versus the 29 cents per share estimate. I skimmed the report and don't see anything that would account for the share price decline of he last week or so.
What a freaking debacle. Down 13% in a week. The management must have really #$%$ someone off to have this kind of a negative reaction to a good quarter.
With this kind of action it's no wonder why individuals like us don't trust the market.
Yeh I almost bought some KCLI recently when it was trading around $43, but with the small cap volatility in the last week or so I didn't have the guts.
I had picked up some AEL a month or two ago and made a nice trade out today on the run-up after the good earnings report. It will probably keep going up now that I'm out.
Yes and the expenses were higher than expected. They also are spending more money as they try to grow and that seemed to be not expected either. And the company has not fully deployed the capital that was raised earlier in the year.
All in all it appears that it was a confusing quarter and was disappointing, but was it that bad to take the stock down (as of today) 17%? And my other post noted that the stock was going down a week before the earnings announcement, so obviously someone had this information before it was publicly distributed.