Hua, and would like response from Fabulous: Sorry Hua to hear that you are exiting FNHC for now. I thought you were a longer term investor, but we each have our own style in the market. I agree that the CC talked about competition and FNHC growth was slowed somewhat, but I still think the numbers and tone overall was positive. Obviously the market doesn't agree and the PPS remains below $30 per share. At least it has not collapsed by 10-30%, as it sometimes has done in the past. If it can hold $29-31 range for a couple of months, then we might be set up for better news in First Q 2015. Fabulous, what is your take on the Fourth Q report, Conf Call, and on the price action? Are you terribly disappointed? -Scott
Hello all...well, it appears that FNHC has tested its nearterm low of around $28 and did not break through it. A very good sign. So, since late January, pps has been nicely above $28. And today, 3/31 perhaps will hold on to $31. In this somewhat over-priced market, where can you find a company which ha a trailing PE of less than 10, a forward PE of just above 10, a price/brook of 2.0? Furthermore, FNHC boasts a Return of Equity of 25% and has zero debt! The company has proven growth year-over-year, and good growth plans going forward, though admittedly not at the same high rate of growth as in the past 2-3 years. Its management is seasoned and trustworthy and well-respected in the industry. To be sure, the competition is strong and some drop in insurance premiums, but I am convinced these negatives are more than offset by the strong positives. So, onward to $35...and by the end of the year I would not be surprised to see $38. -Scott.
PPS was down 4% this past Thursday, 4/2, while it had jumped up about 7% over the previous two days. Without any news, good or bad. Stock seems to be a favorite of day traders, etc. who profit from these wild swings in price. But for those of us who are patient, should be a good reward. -Scott
Hua and Fabulous...indeed, great report today. Near the open PPS is up 3%....but by the end of the day it should be more like 6-10%, based on past experience with dramatic price fluctuations. 4th Q earnings at .72, going forward, on 4 quarters, that would be $2.88 earnings. With multiple of a very low 12, that gives us a price of $34.50, at a multiple of 15 that gives us $43. And as Fabulous reports, the news is looking even better for next year. So I think the likelihood of at least a $40 price by the end of 2015 is very, very good. Thanks for your good postings. -Scott
So, what happened today, after the good 4th Q report came out? A solid report, but some slowdown in growth...good growth, but maybe not as robust as in the past. But almost all measures of profitability were up, some significantly up. Yet, by the end of the day the pps is down 4%. What gives? -Scott