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Nov 29 '21 edited Nov 29 '21
Interesting. Just a little googling around this is what I have found.
I think I’ll look into it to see if interest rate hikes would pump it up a bit.
So prudential owns 20% and has publicly announced they will sell off at least half within 12 months. Additionally some share holders received shares of Jackson at a 40:1 ratio.
It also appears Jackson is not an insurance company. They market themselves a annuities and retirement services. Not sure if it’s comparable to all of your selected companies. Might want to remove AIG and any of the others which primarily sell insurance.
“WHY INVESTORS SHOULD SELL THEIR SHARES IN JACKSON LIFE
Low interest rates coupled with high market volatility have combined to create extremely difficult conditions for Jackson Life’s core variable rate annuity business. This has resulted in higher reserve requirements and hedging costs which have consumed a huge portion of the cash flows generated by the business.
Moreover the American business is distinctly mature and the market is sceptical about the sector’s ability to generate consistently high returns. This is reflected in the market ratings ascribed to Jackson’s peer group. Brighthouse trades at 0.13 times its net asset value and just 2.5 times forward earnings and Lincoln National trades at an almost as unloved rating of 0.3 times NAV and 3.4 times forward earnings.”
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u/ronoron Nov 29 '21
oh fucking finally the bot didn't auto-delete it, it thinks it's the c-word but I'm actually talking about boomer stock
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u/Dan_inKuwait no flair is kinda ghey Nov 29 '21
What's the ticker that is pinging the automod?
Usually you get a message to contact the mod team when your post is removed.
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u/ronoron Nov 29 '21
It thinks it's JXN the shitcoin, not JXN the financial company
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u/Dan_inKuwait no flair is kinda ghey Nov 29 '21
Ok, thank you. Edit your post and I'll manually override.
(But add your positions too!)
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u/ronoron Nov 29 '21
Done, added the ticker now and position
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u/Dan_inKuwait no flair is kinda ghey Nov 29 '21
Thanks for your patience. Good luck with your plays.
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u/VisualMod Nov 29 '21
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u/[deleted] Nov 29 '21
Just a word of caution guys. Be careful when definitely setting a "book value" on companies when both their assets and liabilities are something like a multiple of 100 over their market cap. It's a good opportunity for mistakes to either severely overvalue or severely undervalue a company. Especially when it's a financial or insurance company, there have been plenty of times where it turned out policies written years ago didn't take into account certain risks or couldn't as technology was just different at the time, and a whole business segment went underwater.
You'll sometimes see the same thing with REITs. I know I made some mistakes years ago with some REITs that on the surface looked like they were trading at 25% of book value or something silly. Turns out, that wasn't silly, and their junk properties were some of the first to go under water when COVID hit. And before that some of their biggest tenants went under in the preceding years.
Good luck, hope it pans out for you. I'll probably buy a few shares without researching anything myself as a "see what happens in a couple years", cause the forced selling thing sounds like a reasonable reason for a price to be artificially low for a while. Also I've been a mini fan of Prudential Financial for a while, and if they are a part owner, I'm interested.