Tweet
You know what’s ridiculous? It’s ridiculous how good a stock picker $$$MR. MARKET$$$ is. Today I sold UVE at 23.60. That’s a 15% gain over my purchase price of 20.44 back on December 6, 2014. That’s a 15% gain in less than 2 months. That’s an annualized gain of 106%. Can you do that? You? YOU?? YOU??!!!
Over the same period, the S&P 500 was down 2%. Why would anyone want market returns when $$$MR. MARKET$$$ gives superior returns. Selling UVE today means I now have 49 consecutive profitable trades. 49! The San Franciso 49ers don’t even have 49 consecutive trades. Can you do that? You? YOU?? YOU??!
I am HUGE! Bring me your finest meats and cheeses for I am the greatest stock picker who ever lived! Warren Buffet can’t bench press 315 lbs five times. He can’t pick stocks like me either. This is because I am HUGE!
· He doesn’t always take out the recycling, but when he does, it looks like he had Woodstock at his house.
· Vladimir Putin posted Happy Birthday on $$$MR. MARKET$$$’s Facebook page.
· He doesn’t always go on the Maury Povich show, but when he does, he’s not the father.
· He scores touchdowns without deflating the footballs.
There is a limit to the ability to understand just how $$$MR. MARKET$$$ does it. But like a sunny day on the beach, why ask why? Just enjoy it.
So tell me….am I or am I not the greatest stock picker on the planet? Do you want another stock pick? I can make stock picks and not tell anyone. Or I can make stock picks and tell everyone. You have the power to decide what I do next. Have your friends sign up for my free website now…not later.
I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
================================================== ====================
12-06-2014, 12:04 AM #1 mrmarket's Avatar mrmarket mrmarket is online now
Administrator
Send a message via AIM to mrmarket Send a message via Yahoo to mrmarket
Join Date
Sep 2003
Posts
5,002
Default UVE ==> The Cyber Monday Winner
I used to like to be tan. I like UV rays. I even went to a tanning bed before I went on vacation
As a result, I got really tan:
Now they say UV rays are all bad for you. So I no longer get a tan. I am all sad.
To make me happy, I decided to make more money. Today I bought stock in UVE (Universal Insurance Holdings Inc) at 20.44. I will sell it in 4 to 6 weeks at 23.60. Here’s why I like UVE:
I wouldn’t call this chart a thing of beauty but the stock is showing the kind of momentum that I like, with some consolidation along the way that will give it some legs and room to run. No matter what, the stock is up 57% in the last 12 months while it carries a PE of only 10.3. That’s what I like, a stock that gives you a return of 5% per month yet trades for half the value of the rest of the stock market. How can you go wrong?
Oh and by the way, it pays a 2% dividend too. The good news is that last quarter they raised the dividend to $0.25, so the forward dividend looks more like 3%. That’s pretty good. So while you just hold the stock, you make money on it.
Universal Insurance Holdings, Inc., through its subsidiaries, provides various property and casualty insurance products. It primarily underwrites homeowners’ insurance products; and offers reinsurance intermediary brokerage services. The company provides its products through a network of independent agents in Florida, North Carolina, South Carolina, Hawaii, Georgia, Massachusetts, and Maryland. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was founded in 1990 and is headquartered in Fort Lauderdale, Florida. Fort Lauderdale is excellent. That’s where we have our Bonapalooza trip every year, at the Hard Rock Casino.
Feeling a little Déjà vu? Why of course, it’s another Florida company that steals money from people who are afraid of hurricanes that just aren’t going to happen. Hey, we’re not going to see a hurricane for at least another 6 months and I plan on selling this stock for a profit well before then.
UIH’s insurance company subsidiaries have established strong relationships with a network of nearly 7,000 independent agents by emphasizing personal interaction, offering superior services and maintaining an exclusive focus on homeowners insurance. The Company’s insurance company underwriters work closely with independent agents to market and underwrite business. With competitively priced products, convenient installment billing plans and proactive claims management, they regularly provide their customers with superior service. Universal Insurance, with its wholly owned subsidiaries, is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims.
The pipeline is robust. As long as the real estate and financing industry demands insurance on loans tied to their projects. Property insurance is what makes Florida's nearly $3 trillion in coastal development possible. Unfortunately, insuring property with massive catastrophic exposure is not easy or cheap. UVE will be printing money for their revenue streams. Remember we are in an economic RECOVERY. That means more projects. Additionaly, even though scared Floridians are this company’s bread and butter, UVE is no longer just about hurricane risk. The company has diversified into new territory also.
Management is doing an excellent job in expanding to other states. If they can get a few big states, and grow, there is no upper limit for UVE. They are pushing new revenues in current states by offering 100 dollar visa gift cards to customer service reps and agents for every new homeowner policy that gets written. Agents are flocking to write UVE products because they want those VISA cards so they can go to Best Buy and get their 50” tee wee.
At November 10, 2014, UIH's insurance company subsidiaries serviced approximately 551 thousand homeowners and dwelling fire insurance policies. Oh, by the way, did you notice that there aren’t that many fires anymore either?
In 2010 there were 362,100 residential fires in the USA. In total the fires caused $6.65 billion in damages. According to the Census there are 131 million housing units in the US and 114 million households. As far as frequency you could figure that 0.317% of households experienced a fire in 2010. Or we could say that 0.276% of housing units had a fire in the year. Furthermore, the chances of a home fire have dropped 20% in the last 10 years. And guess what, people continue to pay more for insurance!
On February 7, 2013, the company announced that UPCIC received approval from the Florida Office of Insurance Regulation for premium rate increases for its homeowners and dwelling fire programs within Florida. The premium rate increases are expected to average approximately 14.1 percent statewide for its homeowners program and 14.5 percent statewide for its dwelling fire program. Ha Ha Ha HA!!
Suckers!
What happens if premiums go up and payouts go down. Earnings go up. Let’s not stop there. Let’s buy a company that’s the best value. To do that, you go to the tale of the tape.
UVE Industry Average
Price/Earnings TTM 10.3 12.0
Rev Growth (3 Yr Avg) 7.9 5.2
Net Income Growth (3 Yr Avg) 16.8 6.5
Operating Margin % TTM 34.1 15.4
Net Margin % TTM 19.7 10.2
ROA TTM 7.1 2.6
ROE TTM 38.0 10.5
Debt/Equity 0.2 0.3
UVE is operating in a very positive market environment, characterized by increasing rates, regulatory momentum, and declining reinsurance costs.
UVE used to retain a relatively large amount of risk in the event of a catastrophe loss. Look ma..no hurricanes! What made it truly unique was its love for risk. It is like the Titans in the high roller pit in the Hard Rock. Bet big to win big. Stack the black chips to the ceiling. Double the hard 12 and sip the Blue as Kristina brings you cigars as long as your arm so the pit boss has to light them. Universal Insurance Holdings Used to have one of the most questionable investment portfolios in the insurance industry. Whereas its peers would have invested primarily in high-grade debt and a small stock portfolio, Universal Insurance Holdings had a preference for precious metals. Now they are not that bad anymore, but used to like to roll the dice when it comes to avoiding the cost of reinsurance. Look ma…no hurricanes! It was hat man throwing the dice at the crap table and hitting so many numbers he had to siss himself while he kept rolling the bones.
Then..things changed. UVE hired Deutsche Bank to manage its investment portfolio. The 2014 annual report states:
"Working with the investment advisor, we transitioned the composition of our portfolio to a more traditional insurance company investment portfolio."
Cash now makes up about 25% of its investments. Debt securities made up about 61%. Meanwhile, Universal Insurance Holdings has also sized up its reinsurance. The 2014 annual report reveals reinsurance that limits Universal's exposure to $27.5 million of the first, second, and third wind event in Florida. For reference, the loss limit is about one-tenth of Universal's premium revenue. Basically they took their chips off the table. Now the casino is trying to comp them to get their monies back.
“We use reinsurance to reduce our exposure to catastrophic and non-catastrophic losses through a combination of quota share, catastrophe and other forms of reinsurance. Below is a description of our 2014-2015 reinsurance program. We believe that the overall terms of the 2014-2015 reinsurance program are more favorable than the 2013-2014 reinsurance program. We realized cost reductions in part due to market conditions and our preparation and efforts to manage risk exposure. We also are retaining a greater percentage of gross written premiums with wind risk than we did under our 2013-2014 reinsurance program. While we believe the changes to the current reinsurance program are beneficial, there can be no assurance that our actual results of operations or financial condition will be positively affected. The Insurance Entities remain responsible for insured losses notwithstanding the failure of any reinsurer to make payments otherwise due to the Insurance Entities. A major catastrophic event, multiple catastrophes, or the insolvency of one of the larger participants in the reinsurance program could have a material adverse effect on the Insurance Entities' solvency and our results of operations, financial condition and liquidity.”
Universal Insurance Holdings has evolved and prospered, escaping what would have been catastrophic losses from several sizable hurricanes had they happened in the summers of 2010 through 2013. Luckily, they didn't. Since 2010, Universal Insurance Holdings has more than quintupled. Shares traded from a low of $4 in 2010 to over $20 in 2014.
Why is the stock going up so much? It’s always about the earnings.
At the end of October, UVE reported net income of $21.3 million, or $0.61 per diluted share, an increase of $6.9 million, for the third quarter of 2014, compared to net income of $14.4 million, or $0.40 per diluted share, for the same period in 2013.
"Our record third quarter results highlight the successful execution of our strategy to grow our business, increase profitability and deliver value to our shareholders," said Sean P. Downes, the Company's Chairman, President and Chief Executive Officer. "Consistent with our strategy, we continued to maintain disciplined underwriting standards along with a focus on writing high quality, rate adequate, organically grown business. From a growth perspective, earlier this year we decided to reduce our quota share reinsurance which resulted in us retaining a greater portion of our business. In addition, this quarter we have seen an increase in policy count in each and every state in which we are currently writing business. We also continue to diversify our portfolio via geographic expansion and have recently been approved to write business in the state of Indiana. We believe the underlying organic growth drivers of our business remain strong and expect to build on our strong momentum in the fourth quarter."
Third-Quarter 2014 & Recent Highlights
· Earned premiums grew by $25.4 million to $94.3 million.
· Total revenues increased by $25.1 million to $103.5 million.
· Net income and diluted EPS grew by $6.9 million and $0.21, respectively, compared to Q3 2013.
· Completed $10 million share repurchase program announced on June 17, 2014.
· Paid dividends of $0.10 per share.
· The Indiana Department of Insurance issued a Certificate of Authority in October 2014 to UPCIC, a wholly-owned subsidiary of Universal Insurance Holdings, Inc., approving UPCIC as a licensed insurance entity in the state of Indiana.
Third-Quarter 2014 Results
Net income for the third quarter of 2014 of $21.3 million reflects an improvement across multiple measures including an increase in net earned premiums, policy fees and income generated from the Company's investment portfolio, partially offset by a decrease in commission revenue and increases in operating expenses. Earned premiums, total revenues, net income and diluted EPS are all higher than any other quarter in the Company's history.
Diluted EPS of $0.61 benefitted from lower outstanding shares as a result of the cumulative share repurchases made by the Company.
At September 30, 2014, stockholders' equity was $189.1 million compared to $175.6 million at December 31, 2013 reflecting year-to-date net income of $52.0 million, share repurchases of $29.7 million and dividend payments of $10.4 million.
First Nine-Month Results
For the first nine months of 2014, the Company's net income increased by $8.6 million, or 19.9 percent, compared to the same period of 2013. Diluted earnings per share for the first nine months of 2014 increased by $0.35, or 31 percent, compared to the same period of 2013.
Net premiums earned increased by $30.3 million to $231.5 million for the first nine months of 2014 compared to the same period of 2013.
Share Repurchases
During the third quarter of 2014, the Company repurchased 719,937 shares of its common stock at an average purchase price of $13.16 per share. As announced on September 25, 2014, the Company completed its $10 million share repurchase program announced on June 17, 2014, having repurchased a total of 758,361 shares of common stock in the open market at an average price of $13.15 per share.
The Company noted that the completion of its share repurchase program underscores its confident outlook, solid financial position and commitment to effectively deploying capital when it sees clear value. The Board of Directors and management team expect to continue to consider ways to enhance shareholder value, both through strategic growth initiatives and capital returns to shareholders.
Cash Dividends
On August 26, 2014, the Company announced that its board of directors declared a cash dividend of $0.10 per share of common stock which was paid on October 1, 2014, to shareholders of record on September 23, 2014.
Now we know what earnings were, we have to now say what earnings are going to be. Well, the ANAL-ysts following this company say it will earn $1.98 per share in 2015 on revenues of $465 million. Well, let’s remember this one fact. UVE beat earnings by 50% last quarter. What a bunch of morons, for 2014, UVE has already booked $1.55/share so they will easily earn $2.39 in 2014.
$$$MR. MARKET$$$ knows that UVE will have $505 million in revenues in 2015 which will yield $2.72 per share of profit. If you multiply this by its PE 10.3, you get a share price of $28.02 which is well past my sell target. This means UVE will go up by 2 dollars every quarter based on EPS until next year. This is a 30 dollar stock in a very short time. This management team knows what they are doing. In fact, UVE could be a buyout target between 30 to 40 now.
So the next time you see another hurricane turn into a wet fart, just think of those relieved Floridians happily paying those insurance premiums while I watch my stock in UVE go up.
Bring me your finest meats and cheeses.
$$$MR. MARKET$$$
Over the same period, the S&P 500 was down 2%. Why would anyone want market returns when $$$MR. MARKET$$$ gives superior returns. Selling UVE today means I now have 49 consecutive profitable trades. 49! The San Franciso 49ers don’t even have 49 consecutive trades. Can you do that? You? YOU?? YOU??!
I am HUGE! Bring me your finest meats and cheeses for I am the greatest stock picker who ever lived! Warren Buffet can’t bench press 315 lbs five times. He can’t pick stocks like me either. This is because I am HUGE!
· He doesn’t always take out the recycling, but when he does, it looks like he had Woodstock at his house.
· Vladimir Putin posted Happy Birthday on $$$MR. MARKET$$$’s Facebook page.
· He doesn’t always go on the Maury Povich show, but when he does, he’s not the father.
· He scores touchdowns without deflating the footballs.
There is a limit to the ability to understand just how $$$MR. MARKET$$$ does it. But like a sunny day on the beach, why ask why? Just enjoy it.
So tell me….am I or am I not the greatest stock picker on the planet? Do you want another stock pick? I can make stock picks and not tell anyone. Or I can make stock picks and tell everyone. You have the power to decide what I do next. Have your friends sign up for my free website now…not later.
I am HUGE!!
$$$MR. MARKET$$$
www.mrmarketishuge.com
================================================== ====================
12-06-2014, 12:04 AM #1 mrmarket's Avatar mrmarket mrmarket is online now
Administrator
Send a message via AIM to mrmarket Send a message via Yahoo to mrmarket
Join Date
Sep 2003
Posts
5,002
Default UVE ==> The Cyber Monday Winner
I used to like to be tan. I like UV rays. I even went to a tanning bed before I went on vacation
As a result, I got really tan:
Now they say UV rays are all bad for you. So I no longer get a tan. I am all sad.
To make me happy, I decided to make more money. Today I bought stock in UVE (Universal Insurance Holdings Inc) at 20.44. I will sell it in 4 to 6 weeks at 23.60. Here’s why I like UVE:
I wouldn’t call this chart a thing of beauty but the stock is showing the kind of momentum that I like, with some consolidation along the way that will give it some legs and room to run. No matter what, the stock is up 57% in the last 12 months while it carries a PE of only 10.3. That’s what I like, a stock that gives you a return of 5% per month yet trades for half the value of the rest of the stock market. How can you go wrong?
Oh and by the way, it pays a 2% dividend too. The good news is that last quarter they raised the dividend to $0.25, so the forward dividend looks more like 3%. That’s pretty good. So while you just hold the stock, you make money on it.
Universal Insurance Holdings, Inc., through its subsidiaries, provides various property and casualty insurance products. It primarily underwrites homeowners’ insurance products; and offers reinsurance intermediary brokerage services. The company provides its products through a network of independent agents in Florida, North Carolina, South Carolina, Hawaii, Georgia, Massachusetts, and Maryland. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was founded in 1990 and is headquartered in Fort Lauderdale, Florida. Fort Lauderdale is excellent. That’s where we have our Bonapalooza trip every year, at the Hard Rock Casino.
Feeling a little Déjà vu? Why of course, it’s another Florida company that steals money from people who are afraid of hurricanes that just aren’t going to happen. Hey, we’re not going to see a hurricane for at least another 6 months and I plan on selling this stock for a profit well before then.
UIH’s insurance company subsidiaries have established strong relationships with a network of nearly 7,000 independent agents by emphasizing personal interaction, offering superior services and maintaining an exclusive focus on homeowners insurance. The Company’s insurance company underwriters work closely with independent agents to market and underwrite business. With competitively priced products, convenient installment billing plans and proactive claims management, they regularly provide their customers with superior service. Universal Insurance, with its wholly owned subsidiaries, is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims.
The pipeline is robust. As long as the real estate and financing industry demands insurance on loans tied to their projects. Property insurance is what makes Florida's nearly $3 trillion in coastal development possible. Unfortunately, insuring property with massive catastrophic exposure is not easy or cheap. UVE will be printing money for their revenue streams. Remember we are in an economic RECOVERY. That means more projects. Additionaly, even though scared Floridians are this company’s bread and butter, UVE is no longer just about hurricane risk. The company has diversified into new territory also.
Management is doing an excellent job in expanding to other states. If they can get a few big states, and grow, there is no upper limit for UVE. They are pushing new revenues in current states by offering 100 dollar visa gift cards to customer service reps and agents for every new homeowner policy that gets written. Agents are flocking to write UVE products because they want those VISA cards so they can go to Best Buy and get their 50” tee wee.
At November 10, 2014, UIH's insurance company subsidiaries serviced approximately 551 thousand homeowners and dwelling fire insurance policies. Oh, by the way, did you notice that there aren’t that many fires anymore either?
In 2010 there were 362,100 residential fires in the USA. In total the fires caused $6.65 billion in damages. According to the Census there are 131 million housing units in the US and 114 million households. As far as frequency you could figure that 0.317% of households experienced a fire in 2010. Or we could say that 0.276% of housing units had a fire in the year. Furthermore, the chances of a home fire have dropped 20% in the last 10 years. And guess what, people continue to pay more for insurance!
On February 7, 2013, the company announced that UPCIC received approval from the Florida Office of Insurance Regulation for premium rate increases for its homeowners and dwelling fire programs within Florida. The premium rate increases are expected to average approximately 14.1 percent statewide for its homeowners program and 14.5 percent statewide for its dwelling fire program. Ha Ha Ha HA!!
Suckers!
What happens if premiums go up and payouts go down. Earnings go up. Let’s not stop there. Let’s buy a company that’s the best value. To do that, you go to the tale of the tape.
UVE Industry Average
Price/Earnings TTM 10.3 12.0
Rev Growth (3 Yr Avg) 7.9 5.2
Net Income Growth (3 Yr Avg) 16.8 6.5
Operating Margin % TTM 34.1 15.4
Net Margin % TTM 19.7 10.2
ROA TTM 7.1 2.6
ROE TTM 38.0 10.5
Debt/Equity 0.2 0.3
UVE is operating in a very positive market environment, characterized by increasing rates, regulatory momentum, and declining reinsurance costs.
UVE used to retain a relatively large amount of risk in the event of a catastrophe loss. Look ma..no hurricanes! What made it truly unique was its love for risk. It is like the Titans in the high roller pit in the Hard Rock. Bet big to win big. Stack the black chips to the ceiling. Double the hard 12 and sip the Blue as Kristina brings you cigars as long as your arm so the pit boss has to light them. Universal Insurance Holdings Used to have one of the most questionable investment portfolios in the insurance industry. Whereas its peers would have invested primarily in high-grade debt and a small stock portfolio, Universal Insurance Holdings had a preference for precious metals. Now they are not that bad anymore, but used to like to roll the dice when it comes to avoiding the cost of reinsurance. Look ma…no hurricanes! It was hat man throwing the dice at the crap table and hitting so many numbers he had to siss himself while he kept rolling the bones.
Then..things changed. UVE hired Deutsche Bank to manage its investment portfolio. The 2014 annual report states:
"Working with the investment advisor, we transitioned the composition of our portfolio to a more traditional insurance company investment portfolio."
Cash now makes up about 25% of its investments. Debt securities made up about 61%. Meanwhile, Universal Insurance Holdings has also sized up its reinsurance. The 2014 annual report reveals reinsurance that limits Universal's exposure to $27.5 million of the first, second, and third wind event in Florida. For reference, the loss limit is about one-tenth of Universal's premium revenue. Basically they took their chips off the table. Now the casino is trying to comp them to get their monies back.
“We use reinsurance to reduce our exposure to catastrophic and non-catastrophic losses through a combination of quota share, catastrophe and other forms of reinsurance. Below is a description of our 2014-2015 reinsurance program. We believe that the overall terms of the 2014-2015 reinsurance program are more favorable than the 2013-2014 reinsurance program. We realized cost reductions in part due to market conditions and our preparation and efforts to manage risk exposure. We also are retaining a greater percentage of gross written premiums with wind risk than we did under our 2013-2014 reinsurance program. While we believe the changes to the current reinsurance program are beneficial, there can be no assurance that our actual results of operations or financial condition will be positively affected. The Insurance Entities remain responsible for insured losses notwithstanding the failure of any reinsurer to make payments otherwise due to the Insurance Entities. A major catastrophic event, multiple catastrophes, or the insolvency of one of the larger participants in the reinsurance program could have a material adverse effect on the Insurance Entities' solvency and our results of operations, financial condition and liquidity.”
Universal Insurance Holdings has evolved and prospered, escaping what would have been catastrophic losses from several sizable hurricanes had they happened in the summers of 2010 through 2013. Luckily, they didn't. Since 2010, Universal Insurance Holdings has more than quintupled. Shares traded from a low of $4 in 2010 to over $20 in 2014.
Why is the stock going up so much? It’s always about the earnings.
At the end of October, UVE reported net income of $21.3 million, or $0.61 per diluted share, an increase of $6.9 million, for the third quarter of 2014, compared to net income of $14.4 million, or $0.40 per diluted share, for the same period in 2013.
"Our record third quarter results highlight the successful execution of our strategy to grow our business, increase profitability and deliver value to our shareholders," said Sean P. Downes, the Company's Chairman, President and Chief Executive Officer. "Consistent with our strategy, we continued to maintain disciplined underwriting standards along with a focus on writing high quality, rate adequate, organically grown business. From a growth perspective, earlier this year we decided to reduce our quota share reinsurance which resulted in us retaining a greater portion of our business. In addition, this quarter we have seen an increase in policy count in each and every state in which we are currently writing business. We also continue to diversify our portfolio via geographic expansion and have recently been approved to write business in the state of Indiana. We believe the underlying organic growth drivers of our business remain strong and expect to build on our strong momentum in the fourth quarter."
Third-Quarter 2014 & Recent Highlights
· Earned premiums grew by $25.4 million to $94.3 million.
· Total revenues increased by $25.1 million to $103.5 million.
· Net income and diluted EPS grew by $6.9 million and $0.21, respectively, compared to Q3 2013.
· Completed $10 million share repurchase program announced on June 17, 2014.
· Paid dividends of $0.10 per share.
· The Indiana Department of Insurance issued a Certificate of Authority in October 2014 to UPCIC, a wholly-owned subsidiary of Universal Insurance Holdings, Inc., approving UPCIC as a licensed insurance entity in the state of Indiana.
Third-Quarter 2014 Results
Net income for the third quarter of 2014 of $21.3 million reflects an improvement across multiple measures including an increase in net earned premiums, policy fees and income generated from the Company's investment portfolio, partially offset by a decrease in commission revenue and increases in operating expenses. Earned premiums, total revenues, net income and diluted EPS are all higher than any other quarter in the Company's history.
Diluted EPS of $0.61 benefitted from lower outstanding shares as a result of the cumulative share repurchases made by the Company.
At September 30, 2014, stockholders' equity was $189.1 million compared to $175.6 million at December 31, 2013 reflecting year-to-date net income of $52.0 million, share repurchases of $29.7 million and dividend payments of $10.4 million.
First Nine-Month Results
For the first nine months of 2014, the Company's net income increased by $8.6 million, or 19.9 percent, compared to the same period of 2013. Diluted earnings per share for the first nine months of 2014 increased by $0.35, or 31 percent, compared to the same period of 2013.
Net premiums earned increased by $30.3 million to $231.5 million for the first nine months of 2014 compared to the same period of 2013.
Share Repurchases
During the third quarter of 2014, the Company repurchased 719,937 shares of its common stock at an average purchase price of $13.16 per share. As announced on September 25, 2014, the Company completed its $10 million share repurchase program announced on June 17, 2014, having repurchased a total of 758,361 shares of common stock in the open market at an average price of $13.15 per share.
The Company noted that the completion of its share repurchase program underscores its confident outlook, solid financial position and commitment to effectively deploying capital when it sees clear value. The Board of Directors and management team expect to continue to consider ways to enhance shareholder value, both through strategic growth initiatives and capital returns to shareholders.
Cash Dividends
On August 26, 2014, the Company announced that its board of directors declared a cash dividend of $0.10 per share of common stock which was paid on October 1, 2014, to shareholders of record on September 23, 2014.
Now we know what earnings were, we have to now say what earnings are going to be. Well, the ANAL-ysts following this company say it will earn $1.98 per share in 2015 on revenues of $465 million. Well, let’s remember this one fact. UVE beat earnings by 50% last quarter. What a bunch of morons, for 2014, UVE has already booked $1.55/share so they will easily earn $2.39 in 2014.
$$$MR. MARKET$$$ knows that UVE will have $505 million in revenues in 2015 which will yield $2.72 per share of profit. If you multiply this by its PE 10.3, you get a share price of $28.02 which is well past my sell target. This means UVE will go up by 2 dollars every quarter based on EPS until next year. This is a 30 dollar stock in a very short time. This management team knows what they are doing. In fact, UVE could be a buyout target between 30 to 40 now.
So the next time you see another hurricane turn into a wet fart, just think of those relieved Floridians happily paying those insurance premiums while I watch my stock in UVE go up.
Bring me your finest meats and cheeses.
$$$MR. MARKET$$$
.
Comment