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.
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.
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.
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.
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.
Don't know what's going on (as usual with this company). They usually make an SEC filing that provides the results of the annual meeting.
The big sellers will be out. Just my guess but Donald Smith must be the distributor du jour. Probably fed up with the poor capital allocation just like NWLI. Will the value of these companies ever be realized?
Thoughts on this?
After consideration, the Company has decided to make changes to certain corporate governance provisions that will be in place at the holding company, if the reorganization is approved by the Company's shareholders. These changes will (i) permit the Holding Company's bylaws to be amended by the affirmative vote of a majority of the holders of stock entitled to vote; (ii) provide that a special meeting of the stockholders may be called by the secretary of the proposed holding company upon the written request of record holder(s) of at least ten percent of the outstanding shares of the Holding Company's common stock; and (iii) provide that the Holding Company will not be governed by Section 203 of the General Corporation Law of the State of Delaware ("DGCL"), an anti-takeover provision of the DGCL.
I know that is shocking!!!
What is actually shocking is that my post from earlier today stating that fact was removed by Yahoo.
I guess Yahoo has a deal with CNBC so it must be against policy to allow the truth to come out.
What a shame and what a sham.
All-in-all I agree with your comments. It might have been better to buy back shares in the open market at the big discount to NAV instead of the special dividend. JMHO.
Sounds good, but we would get better results talking to the wall. NWLI is even more undervalued and the dividend is comically small.