European insurers getting hammered...

Discussion in 'Trading' started by heilbronner, Mar 31, 2003.

  1. by hedge funds. Think they are that bombed out, that there could be some bargains for longer term investors. Sure, they all have their problems, but probably some will survive.

    My favorite: AZ, Allianz, biggest German insurer, pays dividend( at least so far), $ 11 Cash, $ 9 book value, current price at about $ 5.

    But just my thinking, can be deadly wrong.
  2. already sold half of my position with a nice gain of more than 10% within two days. I will place a stopp -loss at 10% from the initial buy price, so this will be a free rider.

    Plan: Sit and wait for the dividend yield of about 5.7%.
  3. I don't know what's up today, but this Allianz just goes through the roof, up more than 10% today, already made more than 20% within days on the remaining position and dividend yield is still to come.

    Oh boy, sometimes it is better to be lucky than clever.
  4. bone

    bone ET Sponsor

    Has Allianz trimmed down it's exposure to German banks and bad debt?
  5. No, they still have big trouble with Dresdner Bank and I guess a lot of bad debt.
    But they are trimming down their exposure in Münich Rück and in the finance sector in general.
    Look, I think management has done everything wrong in the last years, without exception. But I think Allianz will survive as long as there will be a "Dax".
  6. Sold Allianz today with a nice gain of 34% within a couple of days.That was easy money.