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A long time ago, before anyone knew what a pandemic was, the Titans invaded Ft. Lauderdale and completely wrecked the Hard Rock casino. They were stacking the black and drinking the Blue while pairing the Ace and the Jack. After winning at Blackjack and closing down the Center Bar, the only thing left to do was to play a little FMF and then go party with Dennis Rodman. Now the Worm made a lot of money snagging rebounds and wooing Kim Jong Un but if he followed $$$MR. MARKET$$$, he wouldn’t have played FMF, he would have bought FNF. Sorry Worm. No matter what, it was an epic night…or should I say…morning.
Today I bought FNF (Fidelity National Financial, Inc.) at 46.05. I will sell it in 4 to 6 weeks at 53.20. Here’s why I like FNF.
This chart is certainly incredibly impressive. The stock just goes up and up and up in price. It’s up 78% in the past 12 months yet its PE is still less than 9. The reason is that the earnings outlook is incredible. What’s really exciting about this trade is that the stock is still trading below its pre-pandemic levels, although the housing market is about to EXPLODE. Furthermore, FNF is announcing earnings this week. Watch and learn from the master. There is a LOT of room for this stock to RUN, just by retracing where it already should have been.
Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty insurance. The company also provides technology and transaction services to the real estate and mortgage industries; and mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. In addition, it offers annuity and life insurance products, such as deferred annuities that include fixed indexed, fixed rate, and immediate annuities, as well as indexed universal life insurance products. Further, the company engages in the real estate brokerage business. Fidelity National Financial, Inc. was founded in 1847 and is headquartered in Jacksonville, Florida.
What’s better than mining for gold during a gold rush? You sell the picks and shovels. That’s exactly what we’re doing here with FNF. This company is a strong performer in varying market conditions and the easiest way to benefit from the U.S. real estate market. The real estate and mortgage market has gone bananas during the pandemic mess of 2020. Virtual work has families fleeing major city centers to more suburban environments – that means more houses being sold. Plus, look at all of the stimulus..more stimulus means more money being pumped into real estate.
Fidelity National Financial, Inc. is the leading provider of title insurance and settlement services to the real estate and mortgage industries
• The nation’s largest title insurance and settlement services company
• Most diversified competitor from a geographic, product, and revenue channel perspective
• #1 market share in the residential purchase, refinance, and commercial markets
• FNF holds the #1 or #2 market position in 43 states
• Solid balance sheet enables payment of cash dividend, repurchase of shares, strategic acquisitions, continued investment in core businesses and future repayment of debt
All of the homebuilders have been CRUSHING their earnings this quarter, and FNF reports this week. Last quarter was really good too, but just a prelude of what we’re going to see this week. Here’s last quarter’s report:
Did we mention the dividend of 2.94%. Try getting anywhere close to that in your savings account! They have been growing their dividend annually for like the last 6 years. This stock is so highly undervalued, it’s ridiculous. But now, FNF is currently riding the wave of a hot housing market due to low interest rates. This is why we saw last quarter’s results, with Q4’20 revenue rising by 60% YoY, and adjusted EPS rising by 112%, to $2.01 per share. But THIS quarter is going to be even better. Interest rates are still so low that money is friggin free. Their pre-tax title margin improved by 6.4%, to 22.7%. Meanwhile, FNF maintains a strong balance sheet, with $3.2B in cash, and a debt-to-equity ratio of just 36%. Like a true Titan, Fidelity National Financial has grown EPS by 27% per year, compound, in the last three years.
FNF has a market cap of $13 billion, it’s no little secret. What’s crazy is that its earnings have grown so much but the stock price has not reflected that to the extent that it should have already. It’s stock price hasn’t hit its pre-pandemic levels but almost every other stock on the planet has done it. That’s a lot of runway left. The only risk to this stock is a housing market crash. Who thinks that is going to happen in the next 3 months? You? YOU? YOU??? I’ll be so long gone out of this stock when that happens, who gives a crap. The best news is we don’t even care which way the housing market is going, as long as there is a buyer and a seller, FNF makes money. Just do the title crap and take the vig.
Here’s what the boss had to say last quarter:
“We are extremely pleased with our record fourth quarter and full year title results, fueled by our team's ongoing efforts through such unprecedented times we were able to execute our strategy and deliver superior industry-leading performance. F&G continues to deliver strong results while maintaining a solid investment portfolio, and we are excited at the prospect of entering additional distribution channels with new products in the coming year. Lastly, we will continue to deploy a thoughtful capital allocation plan that is focused on delivering value to our shareholders. We look forward to updating you on our progress during our first quarter call. Thank you.”
Whether its FMF or FNF, the bottom line is that it’s going to be really good for $$$MR. MARKET$$$....not just good….HUGE!
$$$MR. MARKET$$$
Today I bought FNF (Fidelity National Financial, Inc.) at 46.05. I will sell it in 4 to 6 weeks at 53.20. Here’s why I like FNF.
This chart is certainly incredibly impressive. The stock just goes up and up and up in price. It’s up 78% in the past 12 months yet its PE is still less than 9. The reason is that the earnings outlook is incredible. What’s really exciting about this trade is that the stock is still trading below its pre-pandemic levels, although the housing market is about to EXPLODE. Furthermore, FNF is announcing earnings this week. Watch and learn from the master. There is a LOT of room for this stock to RUN, just by retracing where it already should have been.
Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty insurance. The company also provides technology and transaction services to the real estate and mortgage industries; and mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. In addition, it offers annuity and life insurance products, such as deferred annuities that include fixed indexed, fixed rate, and immediate annuities, as well as indexed universal life insurance products. Further, the company engages in the real estate brokerage business. Fidelity National Financial, Inc. was founded in 1847 and is headquartered in Jacksonville, Florida.
What’s better than mining for gold during a gold rush? You sell the picks and shovels. That’s exactly what we’re doing here with FNF. This company is a strong performer in varying market conditions and the easiest way to benefit from the U.S. real estate market. The real estate and mortgage market has gone bananas during the pandemic mess of 2020. Virtual work has families fleeing major city centers to more suburban environments – that means more houses being sold. Plus, look at all of the stimulus..more stimulus means more money being pumped into real estate.
Fidelity National Financial, Inc. is the leading provider of title insurance and settlement services to the real estate and mortgage industries
• The nation’s largest title insurance and settlement services company
• Most diversified competitor from a geographic, product, and revenue channel perspective
• #1 market share in the residential purchase, refinance, and commercial markets
• FNF holds the #1 or #2 market position in 43 states
• Solid balance sheet enables payment of cash dividend, repurchase of shares, strategic acquisitions, continued investment in core businesses and future repayment of debt
All of the homebuilders have been CRUSHING their earnings this quarter, and FNF reports this week. Last quarter was really good too, but just a prelude of what we’re going to see this week. Here’s last quarter’s report:
- Total revenue of approximately $3.8 billion in the fourth quarter versus $2.4 billion in the fourth quarter of 2019
- Fourth quarter net earnings from continuing operations of $803 million and adjusted net earnings from continuing operations of $588 million versus net earnings of $340 million for the fourth quarter of 2019
- Fourth quarter diluted EPS from continuing operations of $2.74 and adjusted diluted EPS from continuing operations of $2.01 versus diluted EPS of $1.22 and adjusted diluted EPS of $0.95 in the fourth quarter of 2019
- Total revenue of approximately $3.0 billion versus approximately $2.3 billion in total revenue in the fourth quarter of 2019
Did we mention the dividend of 2.94%. Try getting anywhere close to that in your savings account! They have been growing their dividend annually for like the last 6 years. This stock is so highly undervalued, it’s ridiculous. But now, FNF is currently riding the wave of a hot housing market due to low interest rates. This is why we saw last quarter’s results, with Q4’20 revenue rising by 60% YoY, and adjusted EPS rising by 112%, to $2.01 per share. But THIS quarter is going to be even better. Interest rates are still so low that money is friggin free. Their pre-tax title margin improved by 6.4%, to 22.7%. Meanwhile, FNF maintains a strong balance sheet, with $3.2B in cash, and a debt-to-equity ratio of just 36%. Like a true Titan, Fidelity National Financial has grown EPS by 27% per year, compound, in the last three years.
FNF has a market cap of $13 billion, it’s no little secret. What’s crazy is that its earnings have grown so much but the stock price has not reflected that to the extent that it should have already. It’s stock price hasn’t hit its pre-pandemic levels but almost every other stock on the planet has done it. That’s a lot of runway left. The only risk to this stock is a housing market crash. Who thinks that is going to happen in the next 3 months? You? YOU? YOU??? I’ll be so long gone out of this stock when that happens, who gives a crap. The best news is we don’t even care which way the housing market is going, as long as there is a buyer and a seller, FNF makes money. Just do the title crap and take the vig.
Here’s what the boss had to say last quarter:
“We are extremely pleased with our record fourth quarter and full year title results, fueled by our team's ongoing efforts through such unprecedented times we were able to execute our strategy and deliver superior industry-leading performance. F&G continues to deliver strong results while maintaining a solid investment portfolio, and we are excited at the prospect of entering additional distribution channels with new products in the coming year. Lastly, we will continue to deploy a thoughtful capital allocation plan that is focused on delivering value to our shareholders. We look forward to updating you on our progress during our first quarter call. Thank you.”
Whether its FMF or FNF, the bottom line is that it’s going to be really good for $$$MR. MARKET$$$....not just good….HUGE!
$$$MR. MARKET$$$
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