Author Topic: GTS - Triple-S Management  (Read 6081 times)

Stuart D

  • Newbie
  • *
  • Posts: 47
Re: GTS - Triple-S Management
« Reply #10 on: October 14, 2019, 01:02:04 AM »
Is anyone still holding GTS? I like the consistent buybacks they have been doing over the years.

I got excited seeing it was trading at 0.35 price / book. Then I did some more digging and found they are having to pay out $687.8m in claims related to Hurricane Maria :/

Is that enough to wipe a company this size out?


Spekulatius

  • Hero Member
  • *****
  • Posts: 3245
Re: GTS - Triple-S Management
« Reply #11 on: October 14, 2019, 03:56:10 AM »
Is anyone still holding GTS? I like the consistent buybacks they have been doing over the years.

I got excited seeing it was trading at 0.35 price / book. Then I did some more digging and found they are having to pay out $687.8m in claims related to Hurricane Maria :/

Is that enough to wipe a company this size out?

Well, David Merkel (Aleph Blog and he knows insurance very well) has bought some and apparently thinks it’s not.
https://seekingalpha.com/article/4292851-dissent-triple-s-management

Their property insurance probably could be wiped out, but it’s only a small part of the whole company (health care insurance is the largest) and there don’t seem to be an Cross Company guarantees.  So it’s possible that their property insurance goes into default.

“ Russianbear” or whoever hides behind that handle is short and has written it up. I initially bought some too and then sold (for a small profit) as it’s too tough for me to get a handle on.

The company isn’t well managed and hasn’t been as long as I followed it.  They did make some changes in the health insurance business and ceded market share for better profitability. In addition, this is a Puerto Rico business....
« Last Edit: October 14, 2019, 04:03:39 AM by Spekulatius »
To be a realist, one has to believe in miracles.

Stuart D

  • Newbie
  • *
  • Posts: 47
Re: GTS - Triple-S Management
« Reply #12 on: October 14, 2019, 11:49:03 AM »
Well, David Merkel (Aleph Blog and he knows insurance very well) has bought some and apparently thinks itís not.
https://seekingalpha.com/article/4292851-dissent-triple-s-management

^Thanks for posting @Spekulatius. Gee, there are a lot of moving parts to this company. After Merkel's 8th point discussing the article my mind started to drift. I think I'll take a pass on this one. Nice work on buying & selling for a profit.

Spekulatius

  • Hero Member
  • *****
  • Posts: 3245
Re: GTS - Triple-S Management
« Reply #13 on: October 14, 2019, 04:52:50 PM »
Well, David Merkel (Aleph Blog and he knows insurance very well) has bought some and apparently thinks itís not.
https://seekingalpha.com/article/4292851-dissent-triple-s-management

^Thanks for posting @Spekulatius. Gee, there are a lot of moving parts to this company. After Merkel's 8th point discussing the article my mind started to drift. I think I'll take a pass on this one. Nice work on buying & selling for a profit.

I change my opinion rather quickly, if I feel that like I overlooked something or new information comes up. I typically avoid battleground stocks between bears and bulls, especially when I think the the bears have done their homework better than the bulls. The small gain was pure luck,mit could have gone just as well the other way. David Merkel knows insurance, he has worked as an actuary  for an insurance corporation before and goes into the regulatory filings . However, the key question is if GTS holding co has guaranteed the debt of the property insurance sub and there is no clear answer. If not, then I believe GTS is a buy.
To be a realist, one has to believe in miracles.