Yes they raised the quarterly from $.77 to $.80. Good!
Friday Kansas City Life Insurance (KCLI) announced that it would do a reverse split of 250 to 1 followed immediately by a forward 250 for 1 stock split. The purpose is to squeeze out all of the shareholders who own less than 250 shares and reduce the number of shareholders so that KCLI no longer has to report to the SEC which will reduce regulatory and reporting costs. The holders of less than 250 shares will be paid $52.50 per share which is more than a 20% premium of what the stock was trading at before the announcement. KCLI's
book value is about $70 and it is trading at a p/e ratio above 16. These numbers value KCLI considerably higher than NWLI and once again point out how undervalued NWLI is. I used to own KCLI and I have bought some again at about $ 47 expecting to make about $5 plus in probably less than a year.
I expect that Ross Moody will be named the new permanent CEO and that there will be no noticeable change in the way NWLI is run.
However, the good news is that some market heavyweights have become more interested in the financial stocks, namely the big banks and big insurers. If you look at the other insurers, you will see that they are nearing their highs for the year. Normally stocks move in groups because investors are unable to distinguish the good ones from the not so good ones. I have also expanded my position in NWLI in anticipation of an up move and because I think it is extremely undervalued.
I think Brazil should concentrate its efforts on the political corruption related to Petrobas. That should
keep them busy.
You were warned many times on this board that he was an egomaniac that you could not trust.
"How long can people wait for something to change Here?"
The Fed has held interest rates at 0% for more than six years and counting and we will have Obama for eight years. I think that they are all incompetent and the need to go. If i am correct we stand to suffer for about two more years unless something overpowers them.
I repeat myself, Genworth is a TERRIBLE company and they just released a quarterly report to prove it. They reported an operating loss and a big loss from impairment of goodwill. Well, I refuse to buy stock in companies that report having a lot of "accounting goodwill because it frequently just means that the company paid TOO MUCH when they made a bad acquisition. If you would be so kind as to look at NWLI's balance sheet you will find exactly ZERO amount of intangible assets. This is one reason why I own NWLI and not Genworth. Now you should understand why NWLI is going up and Genworth and Amazon are going down. Investing is about owning consistently profitable companies. If you think I am beating you up for your analysis about this situation, you are correct.
First, Genworth is a terrible company. It has never been very successful.
Secondly, investing is about trying to make money by buying stock in companies that make money. Amazon this year will have a net loss and NWLI will make close to $30 per share. Which one would a rational investor buy? Why would any sane person pay $300+ for Amazon and have a company that loses money when he could buy NWLI at $270 and make almost $30. The fact is that the market is finally coming to its senses. Be my guest and buy Amazon because I will probably short it again and I would be very happy to take some of your money.
I disagree. The most unusual thing about NWLI's pricing was that it got down to $125 in 2012. Even at its current price it is only about 2/3 of book value. Some stocks sell at many times book value. Look at Amazon, it sells at 15 times book value and it doesn't even make any money. I shorted Amazon to hedge my long position in NWLI and it worked out very profitably. I covered my short in Amazon after the most recent terrible quarterly report by Amazon and now I am enjoying the rally in NWLI. Look out book value, here we come.
I bot 100 shares not long ago at $239 and the same day I placed a gtc sell order at $245 which got executed yesterday. Today I placed another buy order. I am doing this in an IRA so short term gain is not currently taxable. I wonder if this will continue to work.
Well, what did you expect. Big has to travel in the style of an important CEO. You wouldn't want him slumming on a commercial jet.
He spends 20 hours per day thinking of even more ways to take advantage of his minority shareholders.