Value Microcaps Motherboard

[researcher59]

wade: UVIH looks more attractive the closer I study their 10Q's. I was trying to accumulate more shares today in the high teens, and then picked up a few at .20, before chasing a bit to buy again at .27 and .30. Of course there are a lot of daytraders in this one, so I expect volatility, and we could easily see a sharp selloff like yesterday when it quickly dropped from .36 to .15 on profit taking at the close. But it appears to be so fundamentally undervalued, I doubt that it will dip too far down again. $1 seems very possible within a few weeks or even sooner. Then looking ahead a few months, with a potential blowout 4th quarter, the stock could be trading well over $1.

The Company has been taking advantage of the unique situation in Florida where major insurance carriers are refusing to write homeowners insurance in certain areas. So rates are sky high, and new business very easy to come by. Q3 growth was explosive, and 'earned' insurance premiums for new policies were pro-rated for the quarter based on the start date, so the full extent of increased revenue won't show up till Q4. Plus, they're probably picking up more new business with every passing day. As policies expire, UVIH can pick up the business when other carriers refuse to renew. Of course the key to it all is their reinsurance, which covers them when total claims exceed a certain threshold. Their reinsurance rates will likely be rising, but so will the rates they charge homeowners. And we won't have to worry about any hurricanes till next June at the earliest ! While Q4 earnings should be very strong with less claims than in Q3, Q1 should be even stronger with no hurricane damage claims, the benefit of higher rates and substantially more policies written.