Genworth Financial (GNW): A Good Return but Time to Sell

We invested in Genworth Financial (GNW) during November, 2012 after the share price fell to $5.50/share. The investment thesis [Source] discusses the company then trading at about 16% of book value ($33.52/share); 25% of estimated intrinsic value ($22/share); and 32% of net tangible assets ($17.31/share). The worst of the financial crises was behind it and […]

Genworth’s Australia Debut

Genworth’s Australia debut raised $545 million in U.S. dollars and begs the question; now what? Genworth announced that it’s’ subsidiary, Genworth Mortgage of Australia Limited priced its initial public offering (IPO) of 220 million shares at $2.65 Australian Dollars (A) for a total of A$583 or US$545. This 34% sale of the business values the […]

Genworth Financial (GNW) 1Q14 Executing and Getting Stronger

Genworth Financial (GNW) reported 1Q14 earnings on April 29, 2014 [Source] The company reported net income of $184 million, or $0.37 per diluted share, compared with net income of $103 million, or $0.21 per diluted share, in the first quarter of 2013 for a 79% year over year improvement. The 1Q14 net operating income was […]

Genworth Financial (GNW) 4Q13 Good Results and Expecting More:

Genworth Financial (GNW) reported 4Q13 earnings on February 4, 2014 [Source] and held their 4Q13 earnings conference call the following morning. The company reported net income of $208 million, or $0.41 per diluted share, compared with net income of $168 million, or $0.34 per diluted share, in the fourth quarter of 2012 for a 24% year […]

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 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 […]

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 […]

Genworth Financial (GNW) Reports 4Q12 Results

Genworth Financial (GNW) reported 4Q12 earnings on February 5, 2013 [Source]. Genworth continues to be a work in progress. Our investment thesis [Source] identified many moving parts that need addressed to restore investor confidence. The 4Q12 report on a quarter to quarter basis is characterized as mixed from an operating perspective. From a longer term value perspective, as our investment […]