First Acceptance Corporation (FAC) stock returned 60% in 2013, thanks to the lower-risk nature of auto insurance and the lack of competition in the nonstandard end of the market, says Edward A. Crawford, a Partner and Co-Portfolio Manager primarily responsible for equity securities at Roumell Asset Management, LLC.
“It all added up to something we wanted to own — a balance sheet absent much risk, an overlooked stock trading for a very cheap multiple and high insider ownership by a savvy insurance investor. The stock returned nearly 60% for us last year,” he said.
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Crawford says FAC was trading at 70% book value when he first encountered it, a company with no analyst coverage and with not many visitors or competition.
“The nonstandard end of the market is somewhat of a niche market, and we believe it is less competitive than the standard market for auto insurance. Two of their competitors were acquired in the last several years for around two times tangible book value,” Crawford said.
Mizuho Americas Stock Picker Sees Biotech M&A Prospects as Drug Trials Proceed and Stock Prices Stall
October 24, 2019
Core & Main (NYSE:CNM) is a Top Stock Pick from the Financial Times/Starmine Top Stock Picker in Construction Materials
August 30, 2023
Caterpillar Inc. (CAT) Eyes $110 Stock Price, $7 EPS as Equipment Production Increases in 2013
May 29, 2013
Nu Skin Enterprises (NUS) Stock Rose Fourfold in 2013
January 23, 2014
Twenty-First Century Fox Inc (NASDAQ:FOX): Valuable Assets, Solid Margins and Stock Buybacks
July 06, 2016
