Tag Archives: business

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,

Chris

feel free to reach out to me here on the blog, Twitter, Facebook, or at mealickinvesting@gmail.com.

 

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It’s been just over three weeks

Since I have posted an update out here on my blog. Honestly my social media usage has dropped considerably for the primary reason of, I am busy. I am in the midst of my third week of working full-time again as an underwriter. I am really excited to be back into doing something that I know so well. This underwriting role is considerably more fast paced than what I have done in the past but I think I am going to like that. Yesterday was the first day that I actually approved and declined some quotes. To go along with this, I have continued to work 12 hour days on the weekends at Abercrombie as well. I’m trying to work as much as I can to start cleaning up our finances.

Something else I love about my new position/company is the perk of the exercise facility. I hit the gym 3 times each week for the first two weeks, and already was there yesterday. I’m going to be headed that way very shortly as well. I have also been doing some running when I get home from work, usually after Cayden goes to bed. I put in a solid 5 mile run last night, and was able to keep my overall training pace at 8:58 a mile. It’s a stepping stone to get back to where I want to get to physically. Weigh-in Wednesday is coming up, and I am tracking my weight heavily now, I started at 207.4 lbs at my first weigh-in two weeks ago tomorrow. Yesterday I was 203.6 after my rowing workout. I’m trying to commit to getting in the best shape I can this summer, because I want to be able to run toward the front of our cross country team this fall when they go out to train.

Make every day great,
Chris

More good news this weekend

Some might not say that this is really that good of news, but to me I believe it is good news. After receiving an offer, accepting the offer, and completing the background and drug tests I am officially going to be starting next Monday. The other good news I got this weekend, is that I will be able to stay on with my current employer for Saturdays and Sundays. The good aspect of that, is that we will be able to start paying off some bills that have been nagging us for awhile. The negative aspect is that I won’t be able to go to church with the family still and will be working seven days a week.

My plan is to cleanup as much debt mess as we can over the summer, and then when it comes time for fall to put in for leave until the holiday season again following cross country season. Our team will have a fairly slim racing schedule, and only one weekday race, so I want to be there for every Saturday race I can. This year we are also going to push the kids to meet on Sundays to get a long run in, and I can go and run with the team there as well.

This week I will be working on the house some more, as we try to get it looking as good as possible so we can hopefully sell quickly. Again, I will be trying to get my mileage up as it completely fell apart after my great 5 miler on Monday last week.

Finally time

For a “big” announcement! It’s big to me, maybe not necessarily a huge deal out there for some people, but I have just gotten an offer to become a full-time underwriter! I have continued to work in different types of jobs since I left my position as an insurance agent in November, but this is the first time I will be able to improve upon the salary I was getting and put the paddles back to jumpstarting my career in insurance. I am very excited about the opportunity and will continue to espouse information here at my blog on a more consistent basis now that I have had that huge weight lifted off of my shoulders.

In other news, I have been starting to get fairly consistent at running again lately. Turning in a few 5 mile runs here and there, but now really trying to focus upon getting my mileage up to where I need to get it in order to run some successful 5k races. To go along with the running news, if you have followed my blog for any time, you know that I coach high school cross country. Last night I had one of the coolest experiences as a coach that I have ever had. I got to talk to the head cross country and track coach of a top notch college program, and have him give me some insight as to ways that I can improve upon our current workout program. I got so much information and I am humbly moved at his willingness to give off information.

Make every day great,

Chris

2013

So, I’ve had this post written for a couple of weeks and I actually typed it all up one night but there was an error with the post and I’ve been putting off completing it again, but here it is now.

I’ve noticed that the majority of what you see talking about in the blog world is what challenges they expect 2013 to bring them.  My guess is that a lot of this comes from how negative our media has been consistently getting.  I’m going to spin that to point out what opportunities I believe 2013 is going to bring me.  In 2012, I pretty much took everything I had been doing in my life for the past 6 years and turned it upside down.

At the end of 2012, I got into an amazing company as a seasonal employee.  I’m hopeful that this position will continue to grow solidly into 2013 and possibly become a full-time position or allow me the opportunity to transfer to another area of the company where I can get in full-time.  Upon completion of a Christmas only 2nd seasonal position, I obtained an opportunity to work in a tax firm seasonally for a couple months.  While it is not a tax preparer role, which would be ideal, it can still help me get moving into my CPA testing.  I do have an interview coming up for a full-time career position next Wednesday that could be pretty exciting.

2012 did bring me to completing both my Property & Casualty and Life & Health Ohio insurance licenses.  I’m not completely sure whether I want to get appointed with a couple of insurance carriers and try to develop my own practice or not.  I feel like it may create a nice “marriage” with an accounting firm so it may make sense logically, but it will depend on the costs for sure.  With no real discretionary spending funds to speak of, any entrepreneurial ventures will be completely bootstrapped.

Something else that may present itself as an exciting opportunity is winemaking.  I have been helping a family member prepare his neighbor’s farm for grape production on a 3 acre section.  I’ve learned a lot about how to care for the grapes, but the only way to make good money off of grape farming is to complete the process and turn it into wine.  I’ve bought a book on wine making, and I am going to dedicate some time to reading and learning.  I also found a fairly inexpensive wine making kit to get started, and it will make about 25-30 bottles per attempt.

On the volunteer front, I am going to continue to work with my high school cross country team.  We had a lot of success this year, and I’d like to be a part of the continued growth of each of the kids and the teams as well.  The girls’ team will undergo a major change as we will be losing an All-Ohio runner and another of our top 5 scorers.  We’ll be getting another solid freshman joining the team next year, and they should battle to be a regional qualifying team.  This year our boys’ team started to take a step forward, but due to their youth (6 freshman in the varsity top 7) we still have a lot of room to grow.  I expect our boys’ team to battle for the regional berth as well.

Back on the entrepreneurial side, I am really going to work hard to start to monetize my different blogs.  I have four blogs in place, and a 5th that I really want to start soon that I want to use to help other runners improve their conditioning and give a chronicle of my own conditioning as I try to get back into “real” runner shape and not just an every once in a while jogger.  Depending on the time constraints I may also write about my ventures in wine making.

Now to the last and most important opportunities of 2013.  Growth in my relationship with God and my family.  I feel like 2012 led me to take some good steps in my relationships, but also recognize that there is still forever to go.  My wife and I started a full-year Bible study together that will lead us through the completion of the whole Bible in chronological order.  We’ve asked a couple that we are close with to meet once a week where we can discuss the sections of the Bible that we read that week.  I also want to continue in my own personal study, and continue in my pleasure reading.  It’s been a few years since I had kind of fallen away from reading fiction books but I’m so glad that I am doing more of that and less time watching the TV!

Make every day great,

Chris

12/21 update

So I guess I should make an update as we head into the Christmas season.  One of my jobs that I picked up for seasonal work has ended, but it looks like I may get an opportunity for a seasonal position through early spring.  I’ve got quite a few resumes and applications out there for new opportunities and I’m hopeful that something will come through soon.

Depending on the start-up cost, I may even consider starting my own insurance agency early in the year if nothing else has come up yet.  I’m starting to develop a fair amount of contacts and feeling better about the possibility of going out on my own, especially if I still have the other jobs going and can start it up on the side.

I have also begun writing some sports articles over at farmclub.net, which I am really excited about.  I have always enjoyed putting things down on paper, and speaking my mind, and there is nothing better than to have an opportunity to talk sports and have a good group of guys to work with.  It isn’t a paid position, but I don’t mind, like I said it just gives me an opportunity to hone my writing skills and talk about something I am passionate about.

Well that’s really it for tonight, time to head to bed since I have to be at work at 6 a.m.

Make every day great,

Chris

Fall is coming to an end

Let’s go back to what my original post for Wednesday was going to be about, the end of another season of our lives.  Fall coming to an end is always one of the more difficult seasons for me to close up.  Primarily due to the fact that winter comes, and we get stuck in the house for so long that it really lowers our mood and sense of productivity.  I’m going to focus on being as productive and positive as possible, because if I am ready to come out of the winter on fire then next year will undoubtedly get going in the right direction.

Another reason why I miss this time of year, is due to cross country season coming to a close.  This season is specifically going to be an awesome moment and a sad moment all at the same time.  Tomorrow, one of the best runners that I have ever been around ends her high school cross country career.  I look for her to have a great race, and I’m sure a continuation of a great running career as she heads off to college next fall.  I’m sure it’ll be a lot of fun, and without a doubt she has set the expectations bar very high going forward.  I don’t expect everyone to race like she can, but anyone that puts in the hard work like she has will always have a role on our team.

Now for a positive note, I finally hit the weights again on Wednesday and have started to set up my exercise program.  Maybe, just maybe, I can turn this flabby body back into an athlete’s body.  On top of that, I also intend to get very intentional when it comes to studying to further my education and career this winter by plugging through the CPA coursework.  If I’m going to be inside while it’s dark, I might as well push myself!

Make every day great,

Chris