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Long-Term Incentive Award Design
Our long-term incentive awards to executive officers have included, over time, different combinations of
SARs, PSUs, RSUs and PCAs. Taken together, we believe our annual long-term incentive grants provide our
named executive officers with effective retention value and appropriate incentives to achieve long-term
company performance objectives, while aligning our executive officer compensation program with the longterm interests of our stockholders.
Tom's holding
11/14/2021 - 3115504
08/11/2022 - 3839625
Net sales 500,000
So the holding company discount (cough cough Tom) is what is preventing us from the Oceanwide offer share price....
So, I am a bit surprised that, after reporting EPS of $1.25 while analysts were expecting $0.85, that the 3Q and 4Q analyst estimates have really not risen much. Perhaps the analysts are alerting their associated investment arms and paid subscribers before we see them publicly raise estimate.
But, I do see a few raises…but very moderate. FY2022 has risen…but primarily due to haven beaten 2Q by so much as 3Q and 4Q estimates are still $0.85 & $0.83 respectively. And, while the regular dividend is modest, ACT is on record about a year end special dividend.
Now, it seems ACT is trading primarily with book value or P/B. So, the share price will move with changes in the book value which will be earnings less dividends (which the shareholders get so total return of ACT will be earnings).
So, I eventually expect ACT EPS estimates to eventually get over $4/share which means total return (share price + dividends) for ACT shareholders will be $4 share…again as it seems to trade primarily at a P/B of around 1.0.
This $4 share gain is around 15%/year gain which seems reasonable in these times and markets. The returns for GNW should do just a slight bit better as it needs to ‘catch up’ to ACT’s valuation and then reflect the upcoming credit upgrades.
But, longer term, it seems better to continue to hold…and perhaps transfer GNW holdings into ACT when valuations improve, as GNW has significant additional overhead with its Mgmt and BoD.
But, ACT seems to be performing well…and trading at book value means little downside….just so long as home prices hold as then there is little risk from defaults.
GNW does have some tax credits in the short term…and perhaps a Santander lawsuit gain…but otherwise, their gains will come from ACT less additional overhead.
I’ll be watching for more ACT EPS increases.
BOD shld NOT allow him to sell shares - undermines any/all of the positives
"Yes. I think what we've been saying, Geoff, for many years is when we look at intrinsic value, we look at the value of Enact, and we assume the intrinsic value over the housing cycle. And so generally, our view is Enact in the MI has traded at 1x book or better. So that's how we value Enact.
And then for now, we're putting 0 value in for the Life Companies. I do think we could find down the road for legacy business, there's life and annuity business clearly has some capital associated with that, that has some value. And then obviously, we're not assuming any value yet for our new business, but we think that ultimately it could have value. And so it's really the intrinsic value of Enact as we see it, as I described, zero for the Life Companies and then the net cash, net debt, and net corporate position."
So, is that?... $4,080.5k (ACT book value) x 81.6% = $3,329.7 + $1,141 (corp cash & inv) - $1,477 (corp liabilities) = $2,993.7 divided by 507.8 (total shares outstanding) = $5.90 per share
That would go up as ACT releases excess reserves, ACT generates cash from operations, GNW generates cash through tax assets, and GNW creates value in life/annuity and new business.
What is your calculation of "intrinsic value" for GNW today? in 2023?
I'm sure I already know the answer to this...If you, in deed, have been playing GNW since 05, you took a beating right out of the gate, didn't you?
My original comment still stands...my bag dwarfs yours!!! I been successful in the game for over 25 years before I bought a TON of GNW well below $2.00.
Then again, I'm not as transparent as you because NONE of the chest pounding can be verified, so, you go ahead and think you're a player;)
"Enact Mortgage Insurance (Enact) Credit Policy Announcement August 5, 2022 – Bulletin 2022-04
This Credit Policy Bulletin provides Enact’s response to the Equifax Coding Error
Enact was informed of a coding error that may have affected credit scores issued by Equifax between March 17, 2022 and April 6, 2022. This announcement and Enact’s response are based on the circumstances specific to this situation and apply to any loans for which a corrected credit score is available..."
"...Pricing for loans in this population will be determined based on our evaluation of the updated borrower and loan representative credit scores provided.
If corrected scores result in:
• Lower MI Premiums, we will update the MI premium rate, and refund any excess premiums collected
• Higher MI Premiums, we will take no further action nor request additional premium..."
I'm positive Act will be able to re-coup any loss from Equifax over this.