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.