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Genworth Financial, Inc. (GNW)

NYSE - Nasdaq Real Time Price. Currency in USD
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3.3700-0.0300 (-0.88%)
At close: 3:59PM EDT
3.4000 +0.03 (0.89%)
After hours: 07:49PM EDT
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  • H
    Herbie's Hancock
    For - the - Love of... seriously. Take the medicine management, IPO, reduce debt, get an upgrade and move on.
    All of the prognosticators here continue to take it in the shorts, intentionally or not. The earnings estimates calls have been close, but for the hundredth time that does not equate to shareholder value. Yes, BJohn, as you hoped last week I do wish I had shorted going into and all the way through earnings. GNW not even negatively correlating with the market nor 10-year. Jim's running calls for the past 6-months have been a disaster, up to and including yesterday.
    Look at a chart of GNW vs. virtually any index and go back as far as you can. This is a lotto ticket, trade it if you can, otherwise it's not been a value trade in any sense.
  • J
    Jim
    Calling it a blowout earning report is an understatement. Wow! The number looks great and much better than most people have expected. Can you imagine a $3s company generates over $1.5/share annualized earning?
    The most impressive part is that GNW continues to grow its cash balance without dividends and IPO. Its current cash balance should be about $310 million after paying off the September bond in July. Even without the dividend, GNW grows its cash holding about $100 million per quarter. That gives it plenty of runway to seek better valuation for ACT IPO.
    Bullish
  • J
    John
    Can you picture tommy boys resume of the future. CEO of GNW. Accepted buyout from OW but did not make them put funds in escrow subject to forfeiture. dragged out 4 years with the deal falling through. Unable raise the stock value of a profitable company with a book value of apx 29.00 per share up to even 5.00 per share. Hire me and I can do the same for you.
  • J
    JoeSchmo
    So you see - even strong earnings are having no effect. It's zero trust of management.
  • I
    IMMORTAL WEREWOLF
    To put it in perspective of how anemic interest in this stock is right now...

    6M dollars worth of shares have traded on a 1.7B company. No one is interested in buying and (thankfully) selling.

    Quoted price and value are two completely different things.
  • V
    ValuGuy
    another nice qtr of ACT - the run rate Pro Forma EBITDA is well above $500mm against 738mm of debt - JEEZ! get the IPO done!.... clear the AXA debt, get your Investment grade, get DIVs reinstated, keep working on rate hikes, hire a CFO and Marketing/IR Team and make this is a real Company with a real multiple!!
  • X
    Xike
    Value stock without dividend, how’s that work? Until we get some dividend holding this stock, it’s not much of a value.
  • B
    Bjohn
    So between July 1-September 30, MIs CAN pay dividends if they exceed 50% of PMIERS. But on October 1, that number drops to 15%. I would say Oct 1 is when GNW could flow up some dividends to the parent safely.

    Effective July 1, 2021 through September 30, 2021, Section 705 (Limitations Triggered by an
    Available Assets Shortfall) of the PMIERs is temporarily amended to add the following to the end
    of the Section:
    “If an approved insurer has an available assets surplus greater than 50% of the total risk-based
    required asset amount (i.e., after any PMIERs credit that Fannie Mae has granted in connection
    with any applicable credit risk transfer on its insured loans) and after applying the COVID-19-
    related reduction to its risk-based required asset amount on its non-performing primary mortgage
    guaranty insurance loans resulting from the temporary application of Section I above, the
    approved insurer may pay dividends or take other actions described in Section II.(a) above as long
    as such actions do not cause the available assets surplus to fall below 50% as of the end of the
    quarter as of September 30, 2021.
    Bullish
  • J
    Jim
    The magic word for Tom tomorrow is "Dividend". If GNW can announcement dividend resumption from ACT in Q4, GNW will be over 4 tomorrow.
    Bullish
  • M
    Michael
    The press release mentions the end of quarter cash and that it subsequently finished the redemption.
    Is the cash and liquid assets 845-532=313MM or was some of that paid out prior to end of quarter?
    Genworth owes AXA 345MM sometime next year - any chance the Santander lawsuit will be resolved before that payment is due?
  • M
    Michael
    if you are unsure why the stock went down today - it is because of the following quotes.
    "We have a clear picture of a large addressable market for LTC solutions in the U.S. and are working hard on developing a new and improved go-to-market strategy....
    Our plan is to launch this new business sometime in 2022 in partnership with highly rated third parties."
  • J
    Joe
    I'll not mention the ticker, but a 5 year chart has The Acme Corporation going from $7.00 to $115.00, while GNW went from $3.50 to today's $3.37.
  • B
    Bjohn
    So they should raise about 700M from the IPO and 200M from the Q4 Enact dividend.

    That would bring the Holdco debt to about 1B. At that point they could do dividends or buybacks.
    Bullish
  • B
    Bjohn
    I would say that the biggest takeaway is that the Life Segment is no longer a drag on the company. Enact has almost 2B excess cash so there's plenty of liquidity.

    Enact has a 4.1B book value and the Holding company is down to 1.7B debt. That's already a $5/share stock trading Enact at book value.
    Bullish
  • X
    Xm
    Some problems may be here for LTC. Next quarter we will have another year-end test for capital level in life insurance business. Unum also has a great quarter but also down sharply.
    https://finance.yahoo.com/news/unum-group-reports-second-quarter-201500430.html
  • J
    JeffS
    IPO of ENACT still planned but no further comment or timing: "The planned IPO of Enact remains a key strategic objective for Genworth and is subject to market and other conditions, however because the company is in registration and subject to applicable publicity restrictions, Genworth is unable to comment further or provide any additional detail at this time."
  • Z
    Zouchzathurt
    I still don't understand the coordinated selloff of GNW during July. The volume was light on many days but the stock ticked down....over and over. 4 consecutive quarterly earning wins.... can I now have my $5.43 payoff. Please!!!!
  • X
    Xm
    Last year, Tom had strong strong confidence that the deal would be closed within 15 days, one month, or two months. His past confidence has destroyed any confidence with him. we just cannot judge what he said is a truth or just lie.
  • J
    JoeSchmo
    Aside from the degree to which they met or exceeded EPS expectations, what's most important IMO is a sense of restored trust that The Street is willing to grant this management team, that they know what they're doing and will deliver on promises made.
  • O
    Orlando
    About rating agencies and why they are not upgrading their estimates:
    Generally, I think they have a very positive view of U.S. MI. But because we have limited sources of capital at the holding company, they have really been in a holding pattern waiting for the potential IPO of Enact. And despite the improvement they still have not been willing to move at this point.

    We continue to share our story and they will make their decisions independent of us. But we do believe we have kept them very well informed along the way. And certainly, they have been made and kept abreast of all the progress we have been making.