IB Net Payout Yields Model

Hartford Insurance is Compelling

Hartford Insurance (HIG) suffered a huge drop after reporting earnings after hours yesterday. The company continues to be hit by losses in it's investment portfolio. Regardless the company guided to roughly $6 in operating income for 2009. Book Value currently stands around $50 as well assuming that most of the bonds they hold rebound as expected.

Considering the stock is not far away from trading at $100 these income and book value projections make this stock very appealing at these levels. Its definitely one to trade using a technical perspective as the fundamentals are off the charts, but worst case fears could come true sending the stock back to the lows of $4 or even lower. Closing above $12 looks very solid so an entry point next week above $12 is tempting dependign on how the Stimulous and Bad Bank Plans go. Assuming a positive start, might be time to load the boat on HIG.


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