Amtrust Financial Services Inc (AFSI)

By Johns Wu on Aug 09, 2007

Danny U. wrote in to talk about AFSI, Amtrust Financial Services Inc. I am looking at the aftermarket right now, and this thing popped 7% in AH trading. And this is on a day that the Dow tumbled 382 points. WOW.

Here are Danny’s thoughts on AFSI.

“AFSI is primarily an insurance company, but their business has almost no exposure to the subprime mortgage crisis. The stock is beat up because of the mortgage crisis, and is a steal right now at about $14. They were at $20.50 a month ago until the subprime crisis hit.

“In addition, AmTrust announced that it has no exposure to sub-prime mortgages. Virtually all of the mortgage-backed securities in the Company’s portfolio are government or agency-guaranteed.”

From what I can gather, they are trading at 3x to 4x the amount of cash they actually have on hand. Earnings this quarter were another blowout at 24 cents (expectations) vs 35 cents actual profit per share. Apparently, the market still views them as having exposure to the mortgage crisis because their stock actually went down again today even after blowing out expectations.”

Thanks Danny! Do you guys have any thoughts on Amtrust Financial?

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This entry was posted on Thursday, August 9th, 2007 at 2:41 pm and is filed under Fundamental Analysis. You can skip to the end and leave a response. Pinging is currently not allowed.

8 Responses to “Amtrust Financial Services Inc (AFSI)”

By Danny U on August 10th, 2007 at 3:38 pm

Another day of the market going down, while AFSI goes up 9%. (Of course, it did drop some in after hours, but stayed in positive territory.)

Danny U

By Doug on August 12th, 2007 at 4:37 pm

Things are looking very bullish for this company. The earnings surged and Wall Street is realizing the niche market they are in…which is anything but sub prime.

–Doug
http://www.tomorrowsnewspaper.blogspot.com

By Oliver on August 14th, 2007 at 2:21 am

Stocks with little or no subprime exposure is getting whacked… Thornburg Mortgage (TMA), for example. Try and catch babies if you want. Most people will end up catching just the bathwater, and in the meantime, have a lot of patience.

cheers, Oliver

By Andrew on August 14th, 2007 at 4:05 am

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By Danny U on August 14th, 2007 at 2:50 pm

Oliver

The thing is, AFSI has blown out earnings expectations for three consecutive quarters. Can any other company unjustly beat up by the subprime crisis boast that? If so, let me know, because I’d be interested in checking them out.

Danny U

By Eric on August 18th, 2007 at 5:33 pm

Long-term all financials will be in a good position as the Fed drops rates 100 basis points before the end of the year.

By Christopher Patton on December 24th, 2007 at 2:20 pm

This stock was hot. I didn’t even have to use wizetrade to know this was a gold mine.

By Patricia Christiansen on January 5th, 2008 at 1:49 pm

As soon as you said subprime and mortgage I knew they were doing bad. Americans are starting to revolt against the whole mortgage industry now. People are getting tired of being screwed over by big business. That’s why people aren’t getting mortgages, because of the widespread paranoya. I don’t know if wizetrade has anything good to say about this one. But then again I could be completely wrong.