Just wondering if anyone is following ESNT. Brought to the board a few months ago and has had a nice run. Growth and earning still very strong but possibly a little ahead of itself.
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I am still in ESNT, but haven’t had time to take any kind of in depth look at it lately.
Just wondering if anyone is following ESNT. - CRAIGDOC66
I am very much interested in ESNT and I want to thank you for bringing it to the board. I wanted to add a financial sector stock to my portfolio given that we will be entering a cycle of fed rate hikes (gifts to the financial sector). I had settled on AmTrust Financial Services (AFSI) over a year ago. AFSI was doing fine. Great looking financials, looked to be a solid winner. Enjoyed a nice gain. Then…they announced a restatement of past financials was coming (I sold all immediately)…then WSJ announced they were being investigated, whiffs of “off-balance sheet” questions. Total disaster.
Given that financial stocks are so susceptible to catastrophic “developments” I have to overcome my considerable cynicism to invest in this sector. But I do believe the sector as a whole will enjoy success in the coming months/years. Ergo, I sought a decent candidate. The challenge is to find an honest player. I’m hoping ESNT fits the bill. The financials look solid. Good growth prospects. I’ve been building a position slowly. It’s now a 4% holding. Funny thing, I had a long-standing GTC order fill just this Friday. I’m in no rush to buy more, just watching, studying and waiting for decent buy points.
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The challenge is to find an honest player. I’m hoping ESNT fits the bill.
Here’s something I’ve asked a couple times but never seen anyone address on ESNT: How are they able to achieve margins so much higher than their competitors?
Bear
How are they able to achieve margins so much higher than their competitors? - Bear
You’re asking the right question, and I don’t have a definitive answer. That’s the problem with financial sector stocks, there’s no way to really know what’s going on unless you’re right there in the middle of the company (and even then, cluelessness abounds). A whole lotta folks were SHOCKED by the revelations about Bear Stearns, Lehman Bros., ENRON, Bernie Madoff and even Wells Fargo (there’s a long, LONG list)! That’s why I will always be wary of financial stocks and will flee at any hint of trouble. All I can say is that ESNT is still a small company and can, therefore, be selective regarding the mortgages it insures/re-insures. The company’s return on assets is roughly 8 times better than the industry average. Analysts continue to hold the company in high regard. Heck, it might all be a flash in the pan. All one can do is watch, study and remain forever vigilant.
I’m not thrilled that ESNT is a Bermuda company.
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I’m not thrilled that ESNT is a Bermuda company.
Why not, putnid? Because of tax reasons?
Why not, putnid? Because of tax reasons? - az5speedy
Remember, I’m cynical, skeptical and wary of financial enterprises. I’d feel better if a company that conducts almost ALL of its business in the US was subject to at least the oversight and regulation (shabby as it has heretofore been) required of US companies. Bermuda offers no such oversight/no safeguards. My antennae are up and quivering.