Ace Insurance
Ace Insurance
stock price not moving ??
i purchased stocks of a company called ACE which is insurance company and the price of my purchase is 28$ dollars and the company announced earning above expected and analysts upped EPS expectations to 3.7$ the problem is this news didnt have effect on the price of the stock and it has been a month since the news and i dont know why ?? it should move upwards from news like this right ?? can any one tell me why it havent moved ?? what should i do sell or hold ?
ACE, the insurance company I know of (both the stock and that I have a policy with them) is selling for about $58 and change last I checked. Standard&Poors gives them a 4-star, Buy rating (think about a grade of B when you were in school). They have a 12-month target of about $70 last I heard, along with about $7+ eps and a dividend of a tad bit over a dollar a share. Meanwhile, another major rating company has them at “underperform” and part of that is because still another rating company, Moody’s, devalued the rating on their (ACE) debt. Because of the credit crunch, ACE’s commercial paper is devalued to slightly above used toilet paper–just like has happened for scads of banks and insurance companies elsewhere.
Sales are good, an estimated $14+billion this year, compared to $7billion in 2002 and a fairly steady line in between. The same company that rates them “underperform” has a better earnings estimate of $8 a share. Compared to earning 28 cents in 2002, and a respectible mix of numbers in between, it all says some intrinsicly good things about the company.
The question is, do you want to sell and let the credit markets sort things out, then buy them back later (when they will be much more expensive), or buy some more while they are cheap, or simply hold and wait. This issue is not that you bought a dog, but that you have a much bigger storm to weather before that dog will go out and hunt again.
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