ACT - Insider buy. COO for 5,000 shares at market. Mortgage insurer spun off from GNW. Stock trades at 20.58 here. Compared to the metrics of the other mortgage insurers (ESNT, NMIH, RDN, MTG) ACT should be an easy $26.00 stock after they announce they will be setting a regular quarterly dividend. Something they said they will be doing this year. At $26 that would be a 26% upside.
GNW is greatly misunderstood. And greatly under-priced IMO. The holding company basically has two units. One being ACT that they spun-off but still own 81.6%. And the other is the US Life unit that includes long term care, life, and annuities. GNW sees that unit as worth zero to them for the foreseeable future. GNW plans to not invest anymore capital in this unit and they are on their own. ACT on the other hand has value to GNW. Their ACT position is worth about $2.74 bil here. That is about $5.39 a share. GNW is selling here at 3.77, a 30% discount. And of course GNW will be seeing dividends from ACT. And GNW receives tax income from both ACT and US Life.