The Financial Sector has been full of disturbing news ever since the last quarter of 2007. The Insurance (Miscellaneous) Industry is an exception as far as this small capital stock is concerned. Business has grown annually by 17% in 2007.
There is more good news. The company has repaid debts early on more than one occasion over the past 12 months. Apart from saving on stockholder funds, discretionary prepayments speak well of the health of the business and of management capabilities.
Though the company remains in the small capital area of the stock market, it is already a world beater in its chosen field. The company provides products and services for managing claims. These are integral to the core purposes of insurers of all kinds.
This stock may be a good choice for investors whose portfolios are affected by the depreciating dollar. The company has substantial business interests abroad, acquiring a UK company in 2006 when the dollar was much better valued than today.
Management has decided to focus on improving margins during 2008. This is precisely the kind of concerted action that can help the stock in the prevalent economic environment.
Institutions own just 18% of the stock. This provides company executives and small stock holders with valuable tactical options. The stock started April 2008 at about twice the 52-week low. It seems set to establish new price levels quickly. It is one of the most interesting small capital investment opportunities from the Insurance (Miscellaneous) Industry.
Let us hear your thoughts below: