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$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
So you drive to fast and you smash your car. No problem, your insurance company fixes it. Then you text when you drive and you smash into the guy in front of you. No problem, your insurance company fixes it. Then you get your new insurance bill and your premiums have gone up. Errrrr. Then your insurance agent calls you and says you no longer can renew your policy with them. Then you have to get insurance with Progressive and you pay a bazillion dollars for insurance and you start driving an old car so you can afford the insurance payment.
What’s the point here? The point is that the insurance companies always win. They raise your premiums to cover your losses. Now think about this. What if the insurance company jacks up your premiums and they don’t have to pay out any losses? They not only make money. They make a TON of money.
Now let’s go down to Florida. Here is a list of the most recent major hurricanes to hit Florida:
What do you notice about this list? There were 7 major hurricanes from 2004/2005. After that, insurance companies in Florida raised their premiums like nobody’s business if you wanted to own a home there. The people gladly paid because they were all faceful and nervous that their houses would get all destroyed without insurance. Now guess what…there hasn’t been a hurricane there in 8 years. Now I don’t want to jinx anyone, but the Florida insurance companies have paid out squat in claims and they are raking in the premiums..CAN’T LOSE! CAN’T LOSE!!!
Today I bought stock in HCI Group, Inc. (HCI) at 41.73. I will sell it in 4 – 6 weeks at 48.18. Here’s why I like HCI:
Yes that is right. This stock is up 77% over the last 52 weeks. What’s even better is that it’s PE is only 9. What’s even better is that it pays a 2.9% dividend. You’re making money all kinds of ways when you own this stock. I love this stock.
Today, HCI Group announced that its board has declared a regular quarterly cash dividend in the amount of 27.5c per common share for Q4, which represents a 22.2% increase over the previous quarterly rate of 22.5c per share. The dividend will be paid Dec. 20 to shareholders of record on the close of business Nov. 15. I love this board!
HCI Group, Inc. provides property and casualty insurance products in Florida. It operates through Insurance Operations and Other Operations segments. The company offers property and casualty insurance to homeowners, condominium owners, and tenants. It also leases office or retail space; and owns and operates one full-service restaurant and two marinas. In addition, the company offers Exzeo, a Web-based application that enables integration between organizations, co-workers, and business partners. Its Exzeo enables users to manage projects through communication and collaboration with other participants in a real-time work environment.
Now I don’t get the thing about the full service restaurant and the two marinas, but I think that’s because the guy that runs this company likes to park his boats there and have a drink or three at his restaurant.
What’s important here is that it’s already October and there are zero hurricanes in 2013. That means that there will be no property damage to worry about until at least next June. Meanwhile, they will be cashing their insurance premiums checks like a slot machine. Ka Ching Ka Ching Ka Ching!!!
HCI Group has recorded strong revenue and EPS growth, during the last year, the last three years and the last five years. Why? No hurricanes in 8 years.
On August 01, HCI Group reported its second-quarter financial results, which beat EPS expectations by $0.18. The company reported income available to common stockholders in the second quarter of 2013 totaled $16.2 million or $1.40 diluted earnings per common share, an improvement from $7.2 million or $0.74 diluted earnings per common share in the second quarter of 2012. Gross premiums earned in the second quarter of 2013 increased 52.4% to $82.0 million from $53.8 million in the same period in 2012.
HCI has recorded very strong revenue and EPS growth. The company is rich in cash ($26 a share) and has a low debt . That’s why they can boost their dividend payment. It’s easy. The suckers in Florida pay high insurance premiums, and we get their cash. It’s a shakedown. They are renewing their policies at a 90% rate. They love HCI. They love to give me money.
If you’re worried about the storm finally coming, I’m not. First of all, they won’t get one til June 2014 at the earliest, and I’ll be out of this stock by then for sure. Second, they can buy reinsurance for a lot cheaper than people are paying them premiums, so they are kind of hedged just in case. Homeowners Choice’s reinsurance program transfers catastrophic risk to 27 highly-rated or fully collateralized reinsurance partners. These guys were underreinsured for the last couple of years, so they gambled and won. Now they are playing with house monies and they are hedged.
It’s like having a 16 and drawing a 5, even if the dealer has a 10 showing. You have drinking machine…can’t lose. CAN’T LOSE!! They have 23 consecutive quarters of profitability and 12 consecutive quarters of shareholder dividends.
HCI’s highly-selective underwriting process determines the best properties to insure. They have proprietary algorithms analyze 48 data points to determine if a
particular policy meets their rigorous standards.
Between 2002-2010, four large national insurance companies (representing 75% of the market) exited the state of Florida. These cowards left the door wide open for HCI. HCI is now the #4 ranked insurer in the state of Florida, with a 3% market share. Their goal is to have 5%. That’s where the growth is going to come from.
These guys are also leveraging their knowledge base into the real estate business. Greenleaf Capital, an HCI division, holds and manages our real estate investment portfolio currently comprised of…
· Two Class A office buildings with more than
· 130,000 square feet of space
· 19 acres of waterfront property in Tierra
· Verde & Treasure Island on Florida’s Gulf coast
Plans to grow Greenleaf’s holdings to more than $100M. Investment philosophy seeks capital appreciation through opportunistic transactions.
They are reinvesting these premiums wisely and should benefit from the rising interest rate environment.
I know I will benefit from the tepid weather environment. The only Hurricanes in Florida play for the University of Miami!
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
So you drive to fast and you smash your car. No problem, your insurance company fixes it. Then you text when you drive and you smash into the guy in front of you. No problem, your insurance company fixes it. Then you get your new insurance bill and your premiums have gone up. Errrrr. Then your insurance agent calls you and says you no longer can renew your policy with them. Then you have to get insurance with Progressive and you pay a bazillion dollars for insurance and you start driving an old car so you can afford the insurance payment.
What’s the point here? The point is that the insurance companies always win. They raise your premiums to cover your losses. Now think about this. What if the insurance company jacks up your premiums and they don’t have to pay out any losses? They not only make money. They make a TON of money.
Now let’s go down to Florida. Here is a list of the most recent major hurricanes to hit Florida:
| Charley | 4 | August 13 | 2004 | 130 | Cayo Costa Punta Gorda |
| Frances | 2 | September 5 | 2004 | 105 | Sewall's Point, Florida |
| Ivan | 3 | September 16 | 2004 | 105 | Gulf Shores, Alabama |
| Jeanne | 3 | September 26 | 2004 | 105 | Hutchinson Island |
| Dennis | 3 | July 10 | 2005 | 105 | Santa Rosa Island |
| Katrina | 3 | August 23 | 2005 | 105 | Hallandale/Miramar FL |
| Wilma | 3 | October 24 | 2005 | 105 | Cape Romano |
Today I bought stock in HCI Group, Inc. (HCI) at 41.73. I will sell it in 4 – 6 weeks at 48.18. Here’s why I like HCI:
Yes that is right. This stock is up 77% over the last 52 weeks. What’s even better is that it’s PE is only 9. What’s even better is that it pays a 2.9% dividend. You’re making money all kinds of ways when you own this stock. I love this stock.
Today, HCI Group announced that its board has declared a regular quarterly cash dividend in the amount of 27.5c per common share for Q4, which represents a 22.2% increase over the previous quarterly rate of 22.5c per share. The dividend will be paid Dec. 20 to shareholders of record on the close of business Nov. 15. I love this board!
HCI Group, Inc. provides property and casualty insurance products in Florida. It operates through Insurance Operations and Other Operations segments. The company offers property and casualty insurance to homeowners, condominium owners, and tenants. It also leases office or retail space; and owns and operates one full-service restaurant and two marinas. In addition, the company offers Exzeo, a Web-based application that enables integration between organizations, co-workers, and business partners. Its Exzeo enables users to manage projects through communication and collaboration with other participants in a real-time work environment.
Now I don’t get the thing about the full service restaurant and the two marinas, but I think that’s because the guy that runs this company likes to park his boats there and have a drink or three at his restaurant.
What’s important here is that it’s already October and there are zero hurricanes in 2013. That means that there will be no property damage to worry about until at least next June. Meanwhile, they will be cashing their insurance premiums checks like a slot machine. Ka Ching Ka Ching Ka Ching!!!
HCI Group has recorded strong revenue and EPS growth, during the last year, the last three years and the last five years. Why? No hurricanes in 8 years.
On August 01, HCI Group reported its second-quarter financial results, which beat EPS expectations by $0.18. The company reported income available to common stockholders in the second quarter of 2013 totaled $16.2 million or $1.40 diluted earnings per common share, an improvement from $7.2 million or $0.74 diluted earnings per common share in the second quarter of 2012. Gross premiums earned in the second quarter of 2013 increased 52.4% to $82.0 million from $53.8 million in the same period in 2012.
HCI has recorded very strong revenue and EPS growth. The company is rich in cash ($26 a share) and has a low debt . That’s why they can boost their dividend payment. It’s easy. The suckers in Florida pay high insurance premiums, and we get their cash. It’s a shakedown. They are renewing their policies at a 90% rate. They love HCI. They love to give me money.
If you’re worried about the storm finally coming, I’m not. First of all, they won’t get one til June 2014 at the earliest, and I’ll be out of this stock by then for sure. Second, they can buy reinsurance for a lot cheaper than people are paying them premiums, so they are kind of hedged just in case. Homeowners Choice’s reinsurance program transfers catastrophic risk to 27 highly-rated or fully collateralized reinsurance partners. These guys were underreinsured for the last couple of years, so they gambled and won. Now they are playing with house monies and they are hedged.
It’s like having a 16 and drawing a 5, even if the dealer has a 10 showing. You have drinking machine…can’t lose. CAN’T LOSE!! They have 23 consecutive quarters of profitability and 12 consecutive quarters of shareholder dividends.
HCI’s highly-selective underwriting process determines the best properties to insure. They have proprietary algorithms analyze 48 data points to determine if a
particular policy meets their rigorous standards.
Between 2002-2010, four large national insurance companies (representing 75% of the market) exited the state of Florida. These cowards left the door wide open for HCI. HCI is now the #4 ranked insurer in the state of Florida, with a 3% market share. Their goal is to have 5%. That’s where the growth is going to come from.
These guys are also leveraging their knowledge base into the real estate business. Greenleaf Capital, an HCI division, holds and manages our real estate investment portfolio currently comprised of…
· Two Class A office buildings with more than
· 130,000 square feet of space
· 19 acres of waterfront property in Tierra
· Verde & Treasure Island on Florida’s Gulf coast
Plans to grow Greenleaf’s holdings to more than $100M. Investment philosophy seeks capital appreciation through opportunistic transactions.
They are reinvesting these premiums wisely and should benefit from the rising interest rate environment.
I know I will benefit from the tepid weather environment. The only Hurricanes in Florida play for the University of Miami!
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
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