Category Archives: Investing

Why I Bought Unum Healthcare Today

In the past I have focused on two strategies for my stock investing.  The original one that I started with is what I would call “Quantitative, Fundamental, Technical”.  It focused on finding an industry sector that is performing well (Quantitative analysis).  From there I would start to dig into the best company fundamentally within that sector and then look at the technicals as well.  I would rank those companies that paid a dividend and also were profitable on 16 different aspects and then purchase shares in the one that came out with the best overall rating.

The second investing style that I started utilizing was strictly technically based.  I would look at short term, medium term, and a long term moving averages and then select those over different industries to diversify this portfolio.  To simplify this as much as I can to write this here is as follows:  I would watch for when the stock price was above the short term moving average and where the medium term had just recently crossed above the long term moving average.

My new system is strictly focused around the fundamental analysis of the business and starts with the P/E ratio.  If you look at the P/E ratio of Unum Healthcare, it is currently trading at 9.63 times their trailing earnings and 8.19 their forward earnings.  I’m looking at their historical average P/E ratios for the 5 and the 10 year terms, which are 15.12 and 10.88.  That puts Unum at 37% below their 5 year average P/E and 12% below the 10 year average.  Other positives in the fundamental valuations of the company are the P/B ratio where typically these companies are bought at values around 30% above their book value, Unum currently trades at 5% below their book value so if they were to be bought out you would look for a significant premium to be attached to a bid for their company.

Now for some tough spots that we have noticed on the fundamental side.  The current price is at 71 times the cash value that they have on hand.  The cash amount will be growing again though as they only trade at 8 times their free cash flow amount.

They do pay a decent dividend of 2.2% and over the past few years they have increased the annual dividend rate by 3.67% over the last 3 years and 9.14% over the last 5 years.  They have plenty of room to continue to grow that dividend as well, since their payout is only 20% of their current earnings.  If you are interested in the dividend they will be going ex-dividend on 4/27/16.  They are also buying back stock right now, which some people are not necessarily a fan of but I like that they are returning value to their shareholders.  The current closing price is right at the price where they averaged their buyback price from early 2015 at 33.75 a share.

Just this month they have entered into an agreement to purchase Starmount Life Insurance Company that they expect to be accretive by 2017.  This adds more potential revenue to the top line very quickly.

Lastly, and not that it even entered into my decision when purchasing this company I see that the company is trading above it’s 20, 50, and 200 day moving averages.  The 20 day and 50 day are both trending up, and will likely catch the 200 day soon.  It may be poised for a rally but if you put in a nice 20% stop loss this stock has the potential to run for quite some time going forward.

Happy investing,


feel free to reach out to me here on the blog, Twitter, Facebook, or at



Time for a market rant

So, I’ve been “perplexed” by this for quite some time.  Why is the stock market continuing to go up?  There really is no valid explanation for it.  The only reason why we are seeing positive run-ups in the stock market as a whole is do to the continuation of quantitative easing by the Fed.  I must be fair to Chairman Bernanke though, as he is not the only central banker that is artificially pumping cash into the system.  The EU is all over it as well.  The only real difference between the time that we are in today and the depression of the 30’s is that they actually allowed the free market to do what it is supposed to do, be free.  I’m not saying I would greatly enjoy seeing my retirement funds drop, but I would appreciate there being just a little honesty in the way the stock market is run.  I think that is probably enough for today, I will step down off my soapbox now.

Make every day great,


9/12 update

I didn’t get enough yesterday morning doing the Insanity workout (insert dripping sarcasm), so I ran hill repeats with the high school cross country team.  It went pretty well I can most definitely say they put me through a serious workout.  I guess it was actually my workout, since I came up with the idea but they pushed me to do more than I really wanted to for sure.

Yesterday was a very productive day at the office.  I didn’t write any new business, but I stayed very busy and got a lot of things done that needed to be accomplished.  Working on some new quotes today and some follow-ups with some quotes that I have recently completed.  I’ll also be getting out the pen to work on some more marketing materials, trying to stay relevant and be top of mind for businesses in the Newark and Heath area.

I pulled out my Kiplinger’s magazine and found something else that I need to take care of for the family.  I need to consolidate my student loans at so I can hopefully lower my payments a little bit.  We’ve recently refinanced our mortgage and will be saving about 200 dollars a month there, just trying to keep plugging through the rest of our debts.  I think we’ll also be able to save .25% on our students loans by setting up an automatic payment for them.  It won’t really save us a lot of money in the short term in the amount of our payment, but with our total loan amount a .25% decrease over the entire length of the term will definitely help save us some money.  Trying to do what we can to put our family in the best position we can.  I also made a trade in one of our retirement accounts yesterday, sold my shares of Chevron stock (very few shares) and bought shares of PPL corporation as a nice dividend paying stock.

Make every day great,


Tuesday 8/14

Not a whole lot happened yesterday, got some quotes back on the Montessori school and riding facility I visited on Monday.  We did get a new program so that we can encrypt files we send via email.  I did get a personal lines referral, but as is usually the case, we started with a game of phone tag.  I’ll have a couple of renter’s  policies to quote today, and some follow-ups on previous quotes but it’ll mainly be marketing again.

Pretty quiet night around the house last night too, we did go out and play some soccer as family.  Cayden and I tried to stay out for at least an hour and half since it was so cool and relaxing out there.  We also blew bubbles for a little while, I love seeing how excited he gets with just some of the most simple things.  Family time is awesome!

So now I’ll finally get back to some good information about finances.  Kiptip #37 is a common theme if you do any looking into personal finance and retirement.  It mentions if you start putting away $200 a month when you get your first full time job (age 22), and continue to do so you’ll have around 1.2 million at age 67 based on 8% annualized returns.  I’m definitely a bit behind, but it gives us a goal to shoot for.  I think that it’s more important to get rid of debt, especially credit cards, where you are paying above 8% than to worry about the investing side for retirement.  Once the debt is gone, it is a lot easier to put money away.  Retirement funding is very important, plus depending on your earnings and job title you can put away a substantial amount with pre-tax dollars.  You may also be eligible to put money in a Roth account, which allows you to put away money now after-tax, but withdraw all the growth in the future without paying taxes.  If you enjoy finance and retirement funding you can definitely do this yourself, but for some people a qualified financial adviser would be the place to turn.  I would suggest you look for someone with a CFP designation, it at least helps to know that the individual has the minimum background knowledge.

Make every day great,


Thursday 6/28

Wednesday was an eventful day!  I was pushing through my work day following up on several quotes I had out, as well as ones where I was still missing information.  I got out and took pictures of the home of my first client early in the day as well.  I was planning to spend almost the entire afternoon on marketing, when I got a call from our son’s preschool that he was still there (he is done at noon over the summer) and needed picked up.  When I got there to get him, my wife had already been there to get him.  Pretty scary to get a call at work that your wife hadn’t been there to get him on time, and that you can’t get ahold of her on her cell phone.  I was definitely scared that she may have crashed somewhere and couldn’t make contact with anyone.

We took the afternoon and went out to the country to meet with her dad about his auto quote that I gave him last week.  Things are looking good to go forward with his quote, and while we were there I got the information to quote one of her brothers as well.  So what looked like a busted day, ended up fairing pretty well.  We got to enjoy some time at the pond fishing and I got some business completed too!

Kiptip #31 is all about tossing paper files you dont need anymore.  I am totally using this tip myself for sure.  I started throwing away some old bank receipts, credit card statements, etc. this last week.  Then some of the old paper files that do still need kept, I am starting to scan in and save them as a pdf for easier access and to clear some space in our house which is at a premium.  There are several companies that allow you to store information free on their server as well, so if your computer goes down and you can’t restore the documents the items you need can be accessed later from their website so you don’t lose those important items!

Make every day great,


First commercial account to quote

Yesterday was another day of primarily working on marketing materials.  I did quote a single auto that is looking like it will be another bind, so that is pretty awesome.  Then as we were about to close the office for the day, we got a call for someone looking for a farm policy.  I don’t think they will need an actual farm policy since they just own the farmland and will be leasing it to local farmers, just a standard lessor’s risk type policy form on the liability side and I’ll need to see if they have any silos or farm buildings that need insured.

Again skipped the planned workout for yesterday and I didn’t get the morning run in, so I probably will not be doing what I need to do again today.  Did get a few small things worked on around the house, although it’s the items that never cease: laundry and dishes.

Leviticus 9:24 “Then fire cam out from before the Lord and consumed the burnt offering and the portions of fat on the altar; and when all the people saw it, they shouted and fell on their faces.”  How often are we so blessed with seeing His glory, yet we do not respond to Him?  He is always doing amazing things we just need to be able to recognize them.

Kip Tip #29 is one that everybody needs to look into at least yearly, “Track down lost loot”. is a great place to start looking for unclaimed funds from abandoned property and/or abandoned bank accounts.  Another good site to check is


Marketing day

Yesterday was kind of slow in regards to quoting of business that I already had in the pipeline and getting new business in, so I spent most of my day working on marketing.  My letter for day care marketing is ready and a few of them will be going out in the mail today.  This is a small niche that I feel really passionate about, because I love to see growth in children and I know that by helping out the wonderful people that work to build the children up, I am in a small way contributing to their success.

I once again skipped my workout, I also skipped it this morning, so it looks like I’ll have to get my run in this evening.  My little brother ran a few sprints yesterday to test his 40 yard time.  I didn’t think it was too bad and it gives him something to build on.  I enjoyed our home group bible study last night and particularly liked what I heard in the bible study podcast I listened to yesterday.  “And he was saying to them, ‘A lamp is not brought to be put under a basket, is it, or under a bed?  Is it not brought to be put on the lampstand?'” – Mark 4:21 This really pressed me to think in what ways do I not let the Lord’s light shine in my life?  How do I try to hide things that I have done or said that do not allow the light to shine for others to see?

Kip Tip #26, how do I find the right person?  What a great question, regardless of whether you are seeking out financial advisors, insurance agents, or some other professional.  The key is to ask the right questions.  Find out if they have other clients with the same characteristics that you have.  Make sure that they are available to meet with you, you shouldn’t go with someone who doesn’t have the time to have face to face meetings or phone calls but is just all about high volume turnover.  The main key is getting to know the person with whom you will be working, make sure that they are willing to be open and honest with you.

Make every day great,