King of the Hill: Roseman
01/02/2004 12:00 am EST
Although Eric Naimer-Roseman is new to our coverage in the Digest, I've followed his exceptional research since 1991. His ENR Asset Management, provides advice to high net worth investors; his specialty is alternative investments, such as hedge funds, commodities, and global opportunities. Here's his top pick for 2004.
"Kingsway Financial Services (KFS NYSE),
based in Ontario, offers non-standard automobile and other specialty
"Kingsway has been a laggard in 2003, due in part to underwriting losses and currency-related issues. The stock trades for peanuts, at just 7.3 times trailing earnings. More importantly, the company's price-to-book-value ratio is just 1.05, or just 5% above its net asset value. The catalyst for an improved valuation will be the recognition of Kingsway's strong earnings power. The next two quarters should prove to be exceptionally strong now that the company has fully provided for past underwriting losses."
buy Kingsway Financial Services, you get the following great attributes every
growth investor seeks from a quality investment: An extremely compelling
valuation, both absolute and relative to its industry; booming long-term
earnings growth; surging net premium growth, mainly in
The key risk-on and off drivers today are the same – U.S. politics, global growth, other centr...