GL $79.00 + $3.24 Anyone who bought around $58.75 could have accumulated a king's ransom! Some pretty positive analyst commentary this morning:
Globe Life shares pricing in 'relatively onerous outcome,' says JPMorgan
TheFlyontheWall.com - Apr 24 07:11 EDT
JPMorgan analyst Jimmy Bhullar believes Globe Life is among the most compelling stocks in the insurance sector, and one that "presents esoteric risk/upside that is not correlated with macro or sector-specific trends." Although there is downside risk to shares if the recent allegations are proven true, the stock price is already discounting a "relatively onerous outcome, even following its recent recovery," the analyst tells investors in a research note. The firm believes the significant recent volatility in Globe Life shares affirms its view that the stock price is being driven more by fear and technical factors than a fundamental analysis of the economic value of the business under reasonable positive or negative scenarios. It believes management addressed concerns about the most serious allegations - the Renee Zinsky lawsuit and accusations of kickbacks - and provided its justification for not including the Department of Justice inquiry in the annual filing. JPMorgan keeps an Overweight rating on the shares with a $136 price target.
I have seen lots of $1 stocks with strong earnings and solid balance sheets triple, quadruple and more, but I have yet to see one go below zero.
