Genworth Financial: The Cheapest US Financial Stock
BL | Jul 03, 2013 01:42AM ET
Genworth Financial (GNW) is a financial security company. It provides insurance, wealth management, investment and financial solutions. It divisions include Insurance and Wealth Management, Mortgage Insurance and Corporate and Runoff.
We had bought GNW at $10.88.
This stock has a price to book ratio of only 0.31 times. This valuation is the lowest among US financial stocks. Tangible book value is $30.29. Current share price is at $10.67. This provide a margin of safety for investors who buy the stock at current level.
The company has a growth rate of 55% from 2010 to 2013. According to bloomberg survey, earnings is expected to rise further. Quarterly earnings has been rising as well, see below.
There are aggressive buying by CEO, SVP, CFO and Directors from May 2011 to May 2013. In total there were 15 buys trades by the management community. This is a sign that the stock is undervalued and future outlook of the company is positive.
Elite hedge funds have been buying this stock as well. You can be sure that they had done extensive research into the company before pouring millions into this stocks.
Management of the company and hedge funds are investing into this stock, why shouldn’t you?
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