Author Topic: GNW - Genworth Financial  (Read 33847 times)

Olmsted

  • Lifetime Member
  • Sr. Member
  • *****
  • Posts: 414
Re: GNW - Genworth Financial
« Reply #20 on: November 19, 2012, 12:52:30 PM »
I'd refer to the entirety of Plan's post of August 13, 2012 concluding "cheap, but not good."  Poor MoS.  Maybe if we see some catalysts really start to unfold it would be time to reassess, but I long ago moved on to greener pastures.


snowball82

  • Sr. Member
  • ****
  • Posts: 256
Re: GNW - Genworth Financial
« Reply #21 on: December 26, 2012, 07:54:18 AM »
We can buy this company 7.18 $, intrinsic value 14 $ ?

News catalysts here :

1) New Chief, Thomas J. McInerney, who was appointed on a permanent basis as from 1 January 2013;
2) 3 non-strategic activities were identified, their sales could increase the capital stock of the parent company (ref. p. Recent MD 99);
3) Increase margins in progress (page 89 * Extract last quarterly report);
4) Institutional investors start to buy the title. Investors values ​​(Seth Klarman, Ray Dalio, David and Edward Lampert Einhorm) has already somewhat begun;
5) In the longer term, higher interest rates will raise the profitability through better returns that can be generated.

Do we have a sufficient margin of safety to cover the risk discount credit agencies?



constructive

  • Hero Member
  • *****
  • Posts: 967
    • My Seeking Alpha articles
Re: GNW - Genworth Financial
« Reply #22 on: January 02, 2013, 09:13:20 AM »
Genworth is a lousy company, but 0.25x tangible book (below every other life insurer and mortgage insurer) is way too cheap. I put current fair value around 0.6x book, with more upside if McInerney is effective.

I guess the market applies a large conglomerate discount since Genworth has several non-strategic lines of business. However, my main problem with them is not foreign MI or asset management - it's life insurance. Life and LTC are their core businesses, earning pitiful returns on capital.  Selling non-core business to raise cash would be positive, but the main thing I want to see is cost cutting in life.

CorpRaider

  • Hero Member
  • *****
  • Posts: 2026
    • The Corpraider
Re: GNW - Genworth Financial
« Reply #23 on: March 21, 2013, 03:18:01 PM »
I was looking at this one closely, but I think I missed it.  Darn Barron's article.  I like the shareholder base too.  Lots of smarties bought/owned it during Q4 2012.  ESL, Greenblatt and Klarman; oh my.
« Last Edit: March 21, 2013, 03:46:14 PM by CorpRaider »

ScottHall

  • Hero Member
  • *****
  • Posts: 805
Re: GNW - Genworth Financial
« Reply #24 on: March 21, 2013, 05:58:27 PM »
I haven't looked at their capital structure much, but I spent a bit of time trying to figure out a way to short Canadian real estate and look a look at their Canadian mortgage insurance subsidiary (it trades in Canada). The thing is so heavily leveraged that it's unbelievable.
You can no longer follow me on Twitter!

jay21

  • Hero Member
  • *****
  • Posts: 1217
Re: GNW - Genworth Financial
« Reply #25 on: March 22, 2013, 06:00:00 AM »
I was looking at this one closely, but I think I missed it.  Darn Barron's article.  I like the shareholder base too.  Lots of smarties bought/owned it during Q4 2012.  ESL, Greenblatt and Klarman; oh my.

I wouldn't put too much stock into the fact that those guys own it.  They could be looking at it more like an option.  Einhorn I think even mentioned that he will often take small positions (1-2%) where he thinks he has good upside but significant downside.
@jay_21_

CorpRaider

  • Hero Member
  • *****
  • Posts: 2026
    • The Corpraider
Re: GNW - Genworth Financial
« Reply #26 on: March 22, 2013, 07:54:07 AM »
Maybe so.  They already made like 40% on their Q4 investments in any case.  I bet einhorn wishes he bought options in JCP and HLF.  hah!

CorpRaider

  • Hero Member
  • *****
  • Posts: 2026
    • The Corpraider
Re: GNW - Genworth Financial
« Reply #27 on: April 30, 2013, 02:35:43 PM »
(Reuters) - Life and mortgage insurer Genworth Financial Inc's first-quarter profit more than doubled, helped by strong performance in its U.S. mortgage insurance business.

Net income rose 124 percent to $103 million, or 21 cents per share, for the quarter ended March 31, from $46 million, or 9 cents per share, a year earlier.

The company's operating profit was 30 cents per share.

The operating income in the U.S. mortgage unit was $21 million, compared with net operating loss of $44 million a year earlier.

http://www.reuters.com/article/2013/04/30/genworthfinancial-results-idUSL3N0DH4H820130430?feedType=RSS&feedName=bondsNews&rpc=43

GrizzlyRock

  • Full Member
  • ***
  • Posts: 115
  • Long-form thinker and value investor
    • GrizzlyRock Capital
Re: GNW - Genworth Financial
« Reply #28 on: May 16, 2013, 09:06:44 AM »
Just a quick note that Klarman exited Genworth during Q1.

Biz trading at roughly half of tangible net worth

CorpRaider

  • Hero Member
  • *****
  • Posts: 2026
    • The Corpraider
Re: GNW - Genworth Financial
« Reply #29 on: May 16, 2013, 03:46:03 PM »
Klarman and Lampert are out but Berkowitz is in.