Genworth Financial (GNW) Long Term Care Looks Good

As you recall we invested in Genworth when their two primary business units; U.S. mortgage insurance and long term care (LTC) insurance were performing poorly. The housing crisis and escalating long term care costs raised questions about the viability of the company’s main business lines. Our investment thesis [Source] centered on a turnaround that was […]

Genworth Financial (GNW) Update and 3Q13 Results

Genworth Financial (GNW) reported 3Q13 earnings on October 29 [Source] and held their earnings conference call the following morning. Results are good and the prospects for continued improvement are encouraging. The stock traded down after headlines like Bloomberg’s “Genworth’s Profit Surges as U.S. Mortgage-Unit Results Improve” and Associated Press “Genworth Financial profits more than triple”. The […]

Genworth Financial (GNW) Reports 2Q13 Results

Genworth Financial (GNW) reported 2Q13 earnings on July 30, 2013 [Source]. The company continues to make progress on its turnaround and our investment thesis remains on track. The company reported 2Q13 net income increased 86% to $141 million or $0.28/diluted share, compared with net income of $76 million or $0.16/diluted share in the 2Q12. This was also […]

Selling American Capital, Ltd. (ACAS)

I am starting to sell my American Capital, Ltd. (ACAS) shares today. ACAS showed a strong performance in book value growth for 1Q13 at 6.7% or 27% on an annualized basis and those gains could continue. However in my view the risks have increased sufficiently to exit the position. Reason #1 we have a nice […]

Genworth Financial (GNW) Reports 1Q13 Results

Genworth Financial (GNW) reported 1Q13 earnings on April 30, 2013 [Source]. At the fourth quarter 2012 earnings release we described Genworth as “a work in progress” this quarter it is more about “progress in works”. Reported results are good and considering the fundamental progress behind the scenes for the future, the results are excellent. Our thesis […]

American Capital (ACAS) Reports 1Q13 Results

American Capital (ACAS) reported 1Q13 earnings on 4/30/2013 [Source]. Net operating income after income taxes, for 1Q13 was $46 million, or $0.14/share. This was below the analysts’ consensus estimate of $0.27 per share and, of course, missing analysts’ estimates to the negative impact stock prices, even if the estimates are not meaningful. In this case, […]

Genworth (GNW) Updates

Capital Plan Approved: Genworth announces [Source] the comprehensive U.S. Mortgage Insurance capital plan has all necessary approvals and is fully implemented as of April 1, 2013. The resourceful capital plan was detailed in our blog post “Genworth’s Announces Resourceful Capital Plan” [Source]. The plan transferred the European mortgage insurance subsidiaries into Genworth’s U.S. mortgage insurance unit, […]

American Capital Ltd. (ACAS) Update: Share Purchases; Investment; and Sale

American Capital Announces the Purchase of 9 Million Shares American Capital Ltd. announced [Source] that during the first quarter of 2013, it purchased 9.0 million shares of American Capital common stock, or 3% of the company’s outstanding shares.  The shares were purchased at an average price of $14.23 per share, totaling approximately $128.3 million. The […]

Genworth (GNW) Announces Sale of Wealth Management Business

In February 2013 Genworth (GNW) named CFO Martin Klein executive vice  president. Adding to the ongoing CFO duties his new role is responsible for, among other duties, positioning the non-core International Protection’s and Wealth Management units’ for eventual sale as outlined in the strategic plan.  We commented at the time that, “It is encouraging to see […]

Genworth (GNW) Takes Further Action on Turnaround

Our Genworth Investment Thesis [Source] noted a lot of moving parts both at the company and macroeconomic level; “the company will likely continue selling at a discount pending further resolution of the many issues that need to be monitored. However, it seems turnaround is underway on both a macro and micro level but largely overlooked […]