Friday, July 10, 2009

HIG & PRU

(Source: Sterne Agee - click each to enlarge)

I along both PRU and HIG. The analyst has buy on PRU and a sell on HIG. As you know, RF is a renegrade and ignores analyst because his "voices" guide him. In my view, there is no reason why PRU shouldn't be a $45 or 50 dollar stock by year end and HIG is my "pet". MET is another good look, as well as LNC which I am also long (but it's a short-term trading long). I caution that the sector is very risky due to uncertainty about the books of these firms but I honestly believe if you want to take a shot a risky play, the sectors implied volatility has dropped and I believe their earnings will be strong. The sector is trading at very low PE's and can easily boom 30-50%...I am talking in weeks. Instiutional buying wants the green flag and them boom, they are in these bad boys (very underowned group).

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