CBL Insurance IPO

[hardt]

Just so I don't forget to keep watching this one I dipped my toe into CBL this morning... where will they be in 2020?

I have a sneaking suspicion they will be valued above and beyond todays 700m.

At 17x ttm earnings and a favourable looking 2018, could warrant a closer look... bit more risk than I usually like to take.

Attachment 9246

[kiora]

Just so I don't forget to keep watching this one I dipped my toe into CBL this morning... where will they be in 2020?

I have a sneaking suspicion they will be valued above and beyond TODAYS

Attachment 9246

Me too,baring an extraordinary event event

[BlackPeter]

Just so I don't forget to keep watching this one I dipped my toe into CBL this morning... where will they be in 2020?

I have a sneaking suspicion they will be valued above and beyond todays 700m.

At 17x ttm earnings and a favourable looking 2018, could warrant a closer look... bit more risk than I usually like to take.

Absolutely - they are in my books with a forward PE of 10.4 (unless they make another substantial increase to their reserves ) and a CAGR of 30!

Board and management have lots of bacon in the game (skin alone wouldn't make up the weight they are invested in);

On the flipside - there are risks as well ... and while I don't think that they set themselves up for unreasonable risks in the next earthquake, bad weather event or leaky housing crisis - they are aggressively expanding into new and unknown markets like e.g. Mexico and India. It is a huge opportunity to be the first in these markets with a number of financial risk insurance products, but they obviously will need to learn to work and make money in countries with high levels of criminality and corruption and a jurisdiction not known for high integrity.

Discl: Holding - but keeping my diversification policies in mind ...

[kiora]

Plenty of growth potential
http://www.nzherald.co.nz/business/n...ectid=11935389

[Joshuatree]

Thanks kiora. Five million homes in Mexico insured(under warranty for completion)!
I have just slammed the bottom drawer on this stock and will give it minimal attention for 5 years (hopefully) and just let things compound.

[peat]

thats the Mexico thats just been having heaps of large earthquakes right?

[Joshuatree]

Sorry , correct me if my interpretation is wrong but to be clear; under warranty insurance, big difference. Low risk high margin imo.
"In the residential market, that involves giving home owners guarantees that a builder will finish the job."

[hardt]

thats the Mexico thats just been having heaps of large earthquakes right?

Contractors bonds, Builders warranties and property deposit bonds... not a household and contents insurer.

[kiora]

thats the Mexico thats just been having heaps of large earthquakes right?

Yep that's the one peat,as JT says CBL insures the rebuilds

[Joshuatree]

And Kiora eats the worm i drink the tequila ,RRRReeeeba!