Does Doug Kass Still Like the Life Insurance Stocks?

Oct 15, 2011
J. Webster
Comments Off on Does Doug Kass Still Like the Life Insurance Stocks?

About three months ago, Doug Kass went on CNBC’s Fast Money and said if you were afraid to buy the bank stocks, you should put your money to work by buying insurance companies like Hartford International, Lincoln National, Metlife and Prudential. He said they were cheap back then, before the stock market collapsed on all of the European debt fears, I wonder if he still likes them today, as they’re ‘extra’ cheap now.

On June 29th, when Kass made the call, Lincoln National (LNC) was trading at $28 a share, now it’s $18 a share. Hartford Financial (HIG) was trading at $26 a share, now it’s around $18 a share. Metlife (MET) was trading at nearly $44 a share, now it’s at near $32 a share. Prudential Financial was trading at $63 a share, now it’s around $50 a share. Give or take, these are all $10 moves down in their stock prices. If they were cheap to Kass then they’re absolutely dirt cheap now.

“Largely his thesis is quite simple – he thinks life insurance stocks will soak up money from investors who need to put money to work somewhere — anywhere — in the financials services space.”

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