Thursday, May 20, 2010

The Investment Case for PMACA

Finally, I get to post some research. The following piece is an updated and expanded version of the research that I have been pitching to anyone and everyone who will listen. The last time I liked a P&C insurance company this much the company was IPC Holdings and Buffett/Berkshire made a bid for it before it got taken out by another company. Very simply, this microcap stock is under-followed and unloved and the market has yet to fully notice that the company has removed the overhang that has clouded the stock since about 2005.

I know this stock is not for everyone, but I think the valuation is compelling and the risk-reward is very attractive at the current price. As usual, I have kept the document in Scribd format in order to preserve the formatting of the charts. If anyone would like a PDF of the research, please feel free to email me. Also, I welcome any comments or questions.

PMA Capital Corporation (PMACA) Research