It looks like there's some good chatter going on on this board...more than the basic newsfeeds anyway. I've watched STFC from afar for some time and wonder whether there is potential to align the company's strengths with that of FAC in a strategic partnership or acquisition to fuel growth. On the one hand, STFC has a strong financial stability, I/A network and commercial auto background but is hindered somewhat in product offerings and further channel distribution. Meanwhile FAC is climbing out of the rubble of the previous CEO while retaining a broad retail network, a desire to make commercial auto a more significant part of the company's portfolio, and a niche specialization in non-standard PPA. The company has virtually no presence among I/As. The current CEO is superior to his predecessor in every way, but as one who hasn't followed in the ins and outs of STFC for a while am I missing something that suggests this partnership wouldn't make sense for both parties?
State Auto Financial NASDAQ : STFC Correlation Histogram
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks May-2016 1,000 Day Parameter 2,830 NASDAQ Stocks Price Analysis This stock mode of correlation coefficient is 0.8 In other words, the correlation coefficient of the other stock
Prediction: STFC and SAMutual will be sold/merged. They are now rated A- with a stable outlook. If Best changes the outlook to negative, or worse, implies they will downgrade to B+, sales will be affected - both commercial and personal lines. At that point, they directors must take care of business, something they didn't do when Restrepo incompetently lead the company into a deep hole. This time their hand may be forced.
This stock is lower now than 2006 during beginning Restrepo years. I wonder if your Board sold him back his Connecticut house at a deep retirement discount, compared to what they over paid for it during the housing bubble ?