SwingTrade Member Forum

[Rawnoc]

CNO 11/28/08 thoughts:

CNO....looking for a 5-10 bagger.

(1) Recession proof stock (they sell mostly senior healthcare & life insurance). The stock is down 70% recently from one-time charges and broad market liquidation in insurance companies, despite CNO's mortgage loan exposure is a miniscule part of their asset base. See the details in the press release and SEC filings:
http://biz.yahoo.com/prnews/081105/clw074.html?.v=101

(2) Minus one-time charges, CNO is making money hand over fist and growing very rapidly. Analyst estimates for 2009 of +$1.26 EPS which is very conservative IMO:
http://finance.yahoo.com/q/ae?s=CNO

(3) Insiders have been loading up in the open market with both fists huge, especially the CEO who spent most of his 2008 salary loading CNO in the last 2 months:
http://finance.yahoo.com/q/ae?s=CNO

(4) Short Interest (Shares Short) 7,201,600
Days To Cover (Short Interest Ratio) 2.8
http://shortsqueeze.com/?symbol=cno