Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty reinsurer Montpelier Re Holdings (NYSE: MRH) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Montpelier's business and see what CAPS investors are saying about the stock right now.
Montpelier Re facts
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Headquarters (founded)
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Pembroke, Bermuda (2001)
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Market Cap
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$1.19 billion
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Industry
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Reinsurance
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TTM Revenue
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$393.5 million
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Management
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President/CEO Christopher Harris (since 2008)
CFO Michael Paquette (since 2008)
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Compound Annual Tangible Book Value Growth (over last three years)
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10%
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Dividend Yield
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2.3%
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Competitors
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XL Capital (NYSE: XL)
Everest Re (NYSE: RE)
Berkshire Hathaway (NYSE: BRK-A)
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CAPS members bullish on MRH also bullish on
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Buffalo Wild Wings (Nasdaq: BWLD)
Apple (Nasdaq: AAPL)
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CAPS members bearish on MRH also bearish on
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Select Comfort (Nasdaq: SCSS)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 733 of the 752 All-Star members who have rated Montpelier -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include kcacant and CREWatcher, both of whom are ranked in the top 2% of our community.
In March, kcacant tapped the stock as a turnaround play that's actually turning: "P/B is good, insurance losses manageable, insurance pricing is firming up. [Montpelier] did make some bad investments lately (as did I), but other than this, things are looking up."
In a pitch from April, CREWatcher helps firm up that bullishness:
2) A bargain. Priced at under book. I expect price to exceed 1.5 x book after we get through this recession (depression?). Further, I expect book value to improve from here, probably even with confirmation of that later today.
3) Diversifying risk. I like the broadening of coverage types and geography. New London platform will take time to rev up, but should smooth out results over time.
4) Firming reinsurance prices. I hear reinsurance prices are on a firming trend in recent months. Makes sense with capital tight in the current economic environment.
5) Small and under-followed. Lets us small guys capitalize on our advantage of not needing consensus or volume (though volume seems to be here anyway).
What do you think about Montpelier, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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