03-16-2021, 03:16 AM
$IGIC is a sleeper company that is DEEPLY undervalued
<!-- SC_OFF --><div class="md"><p><strong>$IGIC (commons) & $IGICW (warrants)</strong></p> <ul> <li>Growing at 31% YoY</li> <li>Extremely Moaty Specialty Insurance Business</li> <li>Family-owned company (~29% of outstanding shares)</li> <li>No debt</li> <li>Not affected negatively by Covid (so not dependent upon reopening)</li> <li>Specialized insurance (high profit margins)</li> <li>Insurance rates are the highest they've ever been (we're seeing 20-30% gains in premiums)</li> <li>Profitable</li> <li>20 Year old business</li> <li>Founder still very active in the company (he's 87)</li> <li>Pays a dividend</li> <li>$380m in cash (their M.C. is $345m CRAZY)</li> <li>Repurchasing shares</li> <li>Has warrants (they're a 1-1 with an $11.50 Strike)</li> </ul> <p>They mainly write insurance in the Middle East (Jabsheh family is well respected and are a real value add. However they've recently added N.A. and did 30m in premiums last quarter).</p> <p><strong>Company History:</strong></p> <p>I spoke to IR (investor relations) she said she won't leave the company until she fixes the volume problem. She's the only employee that's worked for a public company, so the old guard is a bit difficult to talk with. The owner is a big baller, he's worth 100m all from the company. Started it 20 years ago, he's 87 and still goes to work everyday. You can set up a investor call with him at 8pm at night (his time), you'll catch him smoking a cigar and drinking scotch. Fucking chad.</p> <p><strong>So what's the problem?</strong></p> <p>A couple of things... $IGIC went public via a SP4C on March 22nd, 2020. The SPAC offering was at ~$10 the market Armageddon that ensued caused them to drop below $7 and they've traded sideways since then. The original investors (Argo Group being the largest one) would like to exit their position but they are unable to for 2 reasons.</p> <ol> <li>Lockup period ends in March, it's any day now that the SP4C lockup ends.</li> <li>They won't sell at a loss. Until this thing moves above $10 you won't see a real marketplace exist for it... This stock needs liquidity and we can provide that to create a real marketplace for it.</li> </ol> <p><strong>Let's talk fundamentals are valuations...</strong></p> <p>These types of business' are valued on their book. Let's take a look at where $IGIC stands relative to it's competitors.</p> <p>As you can see $IGIC is trading a multiple of .87x price-to-book relative to $KNSL which is 10.15x price-to-book. $IGIC is growing almost as quickly as $KNSL. $IGIC is profitable, in it for the long run, growing quickly, and way underappreciated.</p> <p><strong>Conservative PT:</strong> $12 or ~1.5x price-to-book</p> <p><strong>PT:</strong> $30 or ~4x price-to-book</p> <p><strong>Bullcase PT:</strong> ~$70 or ~10x price-to-book</p> <p>As you can see this is anywhere from a 2 bagger to a 10 bagger. I am very long $IGIC and am excited for the liquidity and volume issues to be resolved. When this has a real marketplace this stock will move... quickly.</p> <p><strong>Positions:</strong></p> <p>25,000 commons @ $7.5</p> <p>10,000 warrants @ $.72</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Socksnbox"> /u/Socksnbox </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/m5s8un/igic_is_a_sleeper_company_that_is_deeply/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/m5s8un/igic_is_a_sleeper_company_that_is_deeply/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p><strong>$IGIC (commons) & $IGICW (warrants)</strong></p> <ul> <li>Growing at 31% YoY</li> <li>Extremely Moaty Specialty Insurance Business</li> <li>Family-owned company (~29% of outstanding shares)</li> <li>No debt</li> <li>Not affected negatively by Covid (so not dependent upon reopening)</li> <li>Specialized insurance (high profit margins)</li> <li>Insurance rates are the highest they've ever been (we're seeing 20-30% gains in premiums)</li> <li>Profitable</li> <li>20 Year old business</li> <li>Founder still very active in the company (he's 87)</li> <li>Pays a dividend</li> <li>$380m in cash (their M.C. is $345m CRAZY)</li> <li>Repurchasing shares</li> <li>Has warrants (they're a 1-1 with an $11.50 Strike)</li> </ul> <p>They mainly write insurance in the Middle East (Jabsheh family is well respected and are a real value add. However they've recently added N.A. and did 30m in premiums last quarter).</p> <p><strong>Company History:</strong></p> <p>I spoke to IR (investor relations) she said she won't leave the company until she fixes the volume problem. She's the only employee that's worked for a public company, so the old guard is a bit difficult to talk with. The owner is a big baller, he's worth 100m all from the company. Started it 20 years ago, he's 87 and still goes to work everyday. You can set up a investor call with him at 8pm at night (his time), you'll catch him smoking a cigar and drinking scotch. Fucking chad.</p> <p><strong>So what's the problem?</strong></p> <p>A couple of things... $IGIC went public via a SP4C on March 22nd, 2020. The SPAC offering was at ~$10 the market Armageddon that ensued caused them to drop below $7 and they've traded sideways since then. The original investors (Argo Group being the largest one) would like to exit their position but they are unable to for 2 reasons.</p> <ol> <li>Lockup period ends in March, it's any day now that the SP4C lockup ends.</li> <li>They won't sell at a loss. Until this thing moves above $10 you won't see a real marketplace exist for it... This stock needs liquidity and we can provide that to create a real marketplace for it.</li> </ol> <p><strong>Let's talk fundamentals are valuations...</strong></p> <p>These types of business' are valued on their book. Let's take a look at where $IGIC stands relative to it's competitors.</p> <p>As you can see $IGIC is trading a multiple of .87x price-to-book relative to $KNSL which is 10.15x price-to-book. $IGIC is growing almost as quickly as $KNSL. $IGIC is profitable, in it for the long run, growing quickly, and way underappreciated.</p> <p><strong>Conservative PT:</strong> $12 or ~1.5x price-to-book</p> <p><strong>PT:</strong> $30 or ~4x price-to-book</p> <p><strong>Bullcase PT:</strong> ~$70 or ~10x price-to-book</p> <p>As you can see this is anywhere from a 2 bagger to a 10 bagger. I am very long $IGIC and am excited for the liquidity and volume issues to be resolved. When this has a real marketplace this stock will move... quickly.</p> <p><strong>Positions:</strong></p> <p>25,000 commons @ $7.5</p> <p>10,000 warrants @ $.72</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Socksnbox"> /u/Socksnbox </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/m5s8un/igic_is_a_sleeper_company_that_is_deeply/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/m5s8un/igic_is_a_sleeper_company_that_is_deeply/">[comments]</a></span>Kind Regards R