ACE Limited (ACE). The Group's principal activity is to provide property and casualty insurance and reinsurance. The Group operates through four business segments: The Insurance - North American segment comprises P&C operations in United States, Canada and Bermuda. The segment writes insurance products including property, liability, professional lines and other specialty lines. The Insurance - Overseas General includes the operations of ACE International and ACE Global Markets. The Global Reinsurance segment comprises ACE Tempest Re Bermuda, ACE Tempest Re USA, ACE Tempest Re Europe and life reinsurance operations. The Financial services segment includes the financial solutions business in the US and Bermuda. These segments distribute their products through various forms of brokers and agencies. It operates in 50 countries including the United States, Bermuda, the United Kingdom and Japan.
ACE closed at an all time high yesterday and yet it is still undervalued. The P/E is 12 and the Price to Book Value is 1.38. Also the insurance sector is attractive at this point, specially the property and casualty sector.
After the terrorist attacks and hurricanes everybody will want to have their properties insured, just in case.
The market agrees with this assessment, look at the all history chart of ACE:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=6831;image)
Over the short term volatility and volume have increased and the stock broke out of its range on Friday:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=6832;image)
Fundamentals and technicals are both bullish on ACE, I will buy this stock at today's open for the 3 Stocks on Fire Portfolio, 6.66% of the capital as usual.
Another all time high for ACE. This is the highest priced stock I ever bought for the 3 stocks on Fire Portfolio and I'm pleased with it.
I was reading some recent news from the company, for example:
ACE Limited Announces Underwriters' Purchase of Additional Ordinary Shares (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=¶m=archive&siteid=mktw&guid=%7B28F83933%2DDB83%2D492C%2D8706%2D6D7AB18C1819%7D)
Big institutions bought 32,909,170 shares at a price per share of $45.58, for total gross proceeds for the company of $1.5 billion. This means stocks are in strong hands.
Earnings will be out next week:
ACE Limited to Hold Its Third Quarter Earnings Conference Call on Wednesday, October 26, 2005 (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=¶m=archive&siteid=mktw&guid=%7B72BCB4B8%2D8D74%2D4E1B%2D8D78%2DE4043F7C1760%7D)
I will continue holding ACE.
Most stocks will go down on the Bear Market that's starting, but ACE isn't one of them. Another new all time high today.
I love the fundamentals and technicals of this stock in the insurance sector and I will continue holding it for the foreseeable future.
Good Morning !
David will not be able to post the regular daily updates today. But he gave me instructions to Hold this position on ACE.
I'll just post an updated chart.
We've had some news on ACE:
ACE USA Introduces Long-Term Care Primary Liability Coverage to Respond to Growing Needs of Today's Changing Long-Term Care Industry; New Product Offers Primary and Excess Liability for Long-term Care Facilities (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=10178&guid=%7BD4D75BFC%2D43E5%2D4FA2%2DBB91%2D25FD3BF89334%7D&symb=)
Also ...
Post-Katrina prices may be a boon
Ace, Chubb, St. Paul results may hint at future profit lift (http://www.marketwatch.com/news/story.asp?guid=%7B10711448%2DED2D%2D46AF%2D909A%2D81B580A3B2BE%7D&siteid=mktw&)
Results will be out next Tuesday and due to Katrina and Rita the company is expected to lose 61 cents a share, but that's temporary. Longer term, as the article says, Katrina and Rita will probably bring more profits than losses to insurers, and the stock market is all about long term.
Technically the stock came down today with the rest of the market, to retest some recently broken resistance areas. Maybe it will even come down to close the gap between $48.03 and $48.38. Just about a fall between 1-2% and I believe ACE will be off to the races again, nevermind results on Tuesday (probably they're going to be better than expected, by the way).
I'll continue holding ACE whatever happens over the short term.
I said this:
QuoteTechnically the stock came down today with the rest of the market, to retest some recently broken resistance areas. Maybe it will even come down to close the gap between $48.03 and $48.38. Just about a fall between 1-2% and I believe ACE will be off to the races again, nevermind results on Tuesday (probably they're going to be better than expected, by the way).
But the gap I was talking about was a breakaway gap, and those are left open many times. This happens because this sort of gap is a "jump" above resistance, so the old resistance, now support, stays at the upper limit of the gap. ACE is a perfect illustration of this: it made a breakaway gap and then came down to retest the new support, prior resistance. Without closing the gap the stock shot up to new highs again on Friday.
QuoteResults will be out next Tuesday and due to Katrina and Rita the company is expected to lose 61 cents a share, but that's temporary. Longer term, as the article says, Katrina and Rita will probably bring more profits than losses to insurers, and the stock market is all about long term.
Probably results will be higher than expected. Expectations were lowered because of Katrina and Rita hurricanes, but probably by too much. We'll see, but I'll continue holding ACE, expecting a positive surprise in earnings on Tuesday.
I said this:
Quote
Results will be out next Tuesday and due to Katrina and Rita the company is expected to lose 61 cents a share, but that's temporary. Longer term, as the article says, Katrina and Rita will probably bring more profits than losses to insurers, and the stock market is all about long term.
Probably results will be higher than expected. Expectations were lowered because of Katrina and Rita hurricanes, but probably by too much. We'll see, but I'll continue holding ACE, expecting a positive surprise in earnings on Tuesday.
Results were out before the close yesterday:
ACE Limited Reports Third Quarter Net Loss of $112 Million; Net Investment Income Increases 30% to $320 Million; Combined Ratio Excluding Catastrophes is 86.4% (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=10178&guid=%7B89E2B1E5%2DCAAB%2D4F10%2D8354%2D376DF9DB8A35%7D&symb=)
Net loss per share was $0.43, much better than the expected $0.61. Earnings for the nine months ended in September are going at $2.63 per share, so, if the 4th quarter is on average we'll get earnings of $3.5 for 2005 which gives ACE a trailing P/E of 14.
The worst is over now, the company will see increasing demand and pricing power in the upcoming quarters.
I will continue holding ACE.
ACE: HOLD
ACE came down in sympathy with the general market, but there was no technical damage. Volume is huge, I see prices above $60 in the near future.
I know ACE isn't a sexy stock, being above $50, but it is a safe bet. Better than cash in the bank, with current interest rates. ACE is a stock and a stock that's moving higher. Those are the kind that I want.
In respect to what happened with NVAX (http://www.3stocksonfire.org/trading/index.php?topic=3053.msg29217#msg29217) I withdraw that $60 statement. I won't give price targets anymore. But I'll continue holding ACE.
Another white candle for ACE. The bulls continue to control the stock. No reason to sell, so hold.
I had to zoom my chart to show that the close was higher than the open, which is more bullish than the opposite.
There are no new stories to tell about ACE today. I have a 5% profit, the trend is up, I will continue holding ACE.
Another new all time high on ACE. There's nothing for a speculator to do, but to sit tight and let the profits run.
Nice news from the company, showing it is socially responsible: ACE Group Announces 20th Anniversary Global Day of Service (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=10178&guid=%7BFAE41604%2D38AA%2D4D17%2D94DF%2DFFCA38AE322C%7D&symb=)
ACE is boring, isn't it? Everyday the stock tells the same old story: «new all time high» :)
The trend is my friend, I'll keep ACE.
Again, new all time high for ACE. Just keep on holding.
Again, new all time high for ACE :D
What's interesting is that the stock makes intraday corrections on profit taking but immediately there's some «buy the dip» attitude and the stock climbs back to a fresh new all time high on a closing basis.
You got love, and absolutely can't sell, a stock with this kind of behaviour.
Unfortunately ACE changed its tune, and it didn't make a new all time high today. The stock fell 0.54%, in sympathy with the general market.
But I continue to be bullish on the general market and on ACE, so I have no reason to sell here. The trend is still up, and the trend is my friend.
ACE filed its 10-Q with the SEC yesterday before the open but don't have time to analyze it now. But the stock reacted as business as usual, so no surprises for the big bulls buying this stock.
I'll just keep on letting the profits run.
As usually happens, the stocks that were already rising are the ones that rise the most when the general market makes a bullish breakout.
Wow, what a beautiful white candle to new all time highs ACE made. I just sit tight and enjoy.
Who would think that this $50 stock would give me a 13% profit so quickly and without any scares in the meantime? I bought it and it didn't stop going up. Another all time high yesterday.
Speculating isn't so much about hard work or picking exactly the right stock. It is about timing. And the time now is to be full invested and let the profits run.
I'm on another computer today so charts are not so annotated as usual.
Bulls got a bit overexcited on ACE (it's understandable) and they produced a gap up at the open. Then the stock came down to exactly close the gap and recovered again by the close.
The stock wants to go above $60 and it wants to do it now. I will ride the rise with the ACE on the 3 Stocks on Fire Portfolio.
ACE came down with the general market on profit taking, no big deal. Fund managers will probably add on support and take the stock to new highs before the end of the year.
I will continue to hold ACE.
Trading Plan for ACE: Hold for as long as it is set to close above the ascending trendline on the chart below. For today's session that trendline stands at $54.4.
ACE reacted positively to the support provided by the ascending trendline. The company released good news yesterday just before the close:
ACE Limited Declares Quarterly Dividend (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=10178&guid=%7BD247D08A%2D1E4A%2D4BE0%2DAB87%2D631E0C9C2F32%7D&symb=)
I will just keep the plan of holding the stock for as long as the trend remains bullish, and that's measured by the ascending trendline on the chart below. For today that trendline stands at $54.75.
There weren't any news during the weekend, I'll just keep the plan of holding for as long as the stock is set to close above the ascending trendline on the chart below.
For today that trendline stands at $55.06.
Perhaps I'll have to take my profits on ACE, the stock is coming dangerously close to the ascending trendline I'm using as a guideline to hold/sell decisions.
For today the ascending trendline stands at $55.40. If ACE is set to close below $55.40 I'll sell. If not, I'll continue holding.
The plan was:
Quote from: David Randolph on November 22, 2005, 07:04:22 AM
Perhaps I'll have to take my profits on ACE, the stock is coming dangerously close to the ascending trendline I'm using as a guideline to hold/sell decisions.
For today the ascending trendline stands at $55.40. If ACE is set to close below $55.40 I'll sell. If not, I'll continue holding.
So I sold ACE today before the close, at price $55.10.