FIG - Freedom Insurance Group

[System]

Freedom Insurance Group designs, distributes and administers life insurance products that are issued by Australian Prudential Regulation Authority (APRA) regulated life insurers.

It is anticipated that FIG will list on the ASX during December 2016.

https://www.freedominsurance.com.au

 

[JTLP]

Is anyone on this? Steady uptrend, a pretty upbeat market release. I like these sorts of products, very consistent and something people do maintain through financial hardship / downturns.

 

[Klogg]

Is anyone on this? Steady uptrend, a pretty upbeat market release. I like these sorts of products, very consistent and something people do maintain through financial hardship / downturns.

The boat fund have owned this for a while and wrote up a decent amount on it in various reports.

Can sign up for their reports here if you want:
http://tbfinvest.com.au/fund-reports/

Disclosure - I don't know them, invest with them, and have never spoken to them. I just read their reports for ideas

 

[skc]

Is anyone on this? Steady uptrend, a pretty upbeat market release. I like these sorts of products, very consistent and something people do maintain through financial hardship / downturns.

Yes I have looked at them and traded their news several times. It's certainly in a strong growth phase and enjoying quite a lot of momentum (both share price and operationally speaking).

However, with a stock like this I think you need to think of the future and discount it back... What does steady state look like down the track? How big can it grow to before the market stop pricing in the growth? Make that judgement, discount it back to the current share price and see if you can actually still make money out of it. Sometimes you will find the market price in so much growth that, even when the growth does eventuate, there is no room for further share price appreciation.

This may or may not be the case for FIG.

 

[VSntchr]

Yes I have looked at them and traded their news several times. It's certainly in a strong growth phase and enjoying quite a lot of momentum (both share price and operationally speaking).

However, with a stock like this I think you need to think of the future and discount it back... What does steady state look like down the track? How big can it grow to before the market stop pricing in the growth? Make that judgement, discount it back to the current share price and see if you can actually still make money out of it. Sometimes you will find the market price in so much growth that, even when the growth does eventuate, there is no room for further share price appreciation.

This may or may not be the case for FIG.

Completely agree with SKC on FIG.

It's one of the rare small caps which has been trading like the whole small end of the market was about 12 months ago. So you don't need to do much digging to see what some of these hyped up growth stocks can look like when sentiment towards them turns south - even if the underlying performance of the business is still ticking along fine, sometimes expectations can just run way too hot.

 

[JTLP]

Thanks SKC and VSntchr. Appreciate the replies and will do as suggested. Would be rare to continue these strong growth numbers, but the insurance sector is always attractive (provided they get the mix right).

 

[greggles]

FIG down around 30% this morning after releasing a disappointing Business Update.

 

[JTLP]

Something about the quality of leads not being great I believe? There’s that mix.

 

[So_Cynical]

FIG was looking cheap last Wednesday and got cheaper on Thursday and then got hammered on Friday, The banking RC is going to have a look at them or the company they are buying, St Andrews Insurance, its a bit of a mystery and so the market is pricing it as an unknown negative.

FOR - Forager Aust Shares Fund holds a large position in FIG thus the FOR SP is also taking a hit, some deep value i think.

 

[Knobby22]

FIG was looking cheap last Wednesday and got cheaper on Thursday and then got hammered on Friday, The banking RC is going to have a look at them or the company they are buying, St Andrews Insurance, its a bit of a mystery and so the market is pricing it as an unknown negative.

FOR - Forager Aust Shares Fund holds a large position in FIG thus the FOR SP is also taking a hit, some deep value i think.

Interesting.

 

[Miner]

folks
What is really happening with FIG? it went down again. Annual result was reasonable even the Net Profit was down only by a single digit. That definitely does not justify the fall. Interested to know from posters.
Ironically none of the shares like CBA or ANZ got hammered like this after Royal Commission. Yes, Healthcare agencies did hammer out but why Freedom Insurance?
Annual result attached - a bit dated but not so old.

 

[galumay]

I suspect the view of the market is that FIG will likely face punitive penalties and also lose a significant part of their customer base. Unlike the banks, where most people will remain customers despite the criminality, with insurers like FIG, they will lose clients in droves.

I suspect its not got to the bottom yet!

 

[Miner]

I suspect the view of the market is that FIG will likely face punitive penalties and also lose a significant part of their customer base. Unlike the banks, where most people will remain customers despite the criminality, with insurers like FIG, they will lose clients in droves.

I suspect its not got to the bottom yet!

Gees. I thought today's price hit the bottm
Will watch carefully with scuba dive set .
Thanks mate.

 

[galumay]

It may have, I dont follow FIG and havent done any research. I was more thinking aloud in response to your question and reflecting the 'noise' I have been hearing about FIG.

 

[Miner]

It may have, I dont follow FIG and havent done any research. I was more thinking aloud in response to your question and reflecting the 'noise' I have been hearing about FIG.

Ha ha. Dont worry. It is all that we understand. May be So Cynical tell the bottom level of his tipping ( sorry SC for the pun)

 

[So_Cynical]

Under 10c today was a surprise, i figured all the sellers were done, the insurance lines that they have decided to stop selling were only 15% of their revenue anyway so i just cant see how this further fall is in anyway justified, the SP punishment is way way over done.

The worst the RC did to FIG was expose that they sold life insurance to a young man with down syndrome, its all way over done, hardly measures up to selling life insurance to dead people as AMP did.

 

[Miner]

Under 10c today was a surprise, i figured all the sellers were done, the insurance lines that they have decided to stop selling were only 15% of their revenue anyway so i just cant see how this further fall is in anyway justified, the SP punishment is way way over done.

The worst the RC did to FIG was expose that they sold life insurance to a young man with down syndrome, its all way over done, hardly measures up to selling life insurance to dead people as AMP did.

thanks, SC and Galumay
Your thoughts are often based on factual calculations and important for me to be sounding boards.

 

[Miner]

today's ASX report says about 32 million shares are released from escrow by Mr Keith Cohen.
One thing I did not understand when the report says change of substantial shareholders holding. I read the shareholding was reduced from Freedom Insurance Group to Freedom Insurance Group - did not understand the transfer from same names to same names could be a real material transaction.

 

[So_Cynical]

I also found that announcement confusing, i suppose because the shares have come out of escrow and can now be sold, thus a change in substantial holding - i note that Forager funds has not been selling - or averaging down, FOR owns about 11% not sure what to make of that?

 

[Miner]

I also found that announcement confusing, i suppose because the shares have come out of escrow and can now be sold, thus a change in substantial holding - i note that Forager funds has not been selling - or averaging down, FOR owns about 11% not sure what to make of that?

Yes SC
What you said is a logical conclusion.
But the fact remains that more than 3 million shares are now liquid
If they or mr Cohen sells them means desperate sales by people who know more.