Savvy Trades and Investments

[abh3vt]

HRTG. Nelson, do you estimate FV for these insurers at a percentage above book value? Forward PE? or some combo of both? Thanks.

The book value for HRTG was at 5.65/sh prior to the secondary offering of stock, in which they issued at least 3.7MM shares (with a max possible of 4.26MM new shares). Shares outstanding as of Q3 prior to the offering were around 26.7MM. Are those director placements in addition to the amounts raised via the primary offering?

Q3 had roughly 40MM in catastrophic event expenses, which actually was flat y/y....so they've had two straight difficult years. I guess they are due for some mean reversion, plus they are clearly raising premiums and diversifying across other states besides FL