March 31, 2010, 6:33 am

Primerica IPO Today!

by: The Financial Blogger    Category: Investment, Market and Risk,Primerica Series,Trading
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As you might already know, a heated debate about Primerica has raged on this blog for quite some time now. This is why I am actually covering this IPO (since I usually leave stock picks to our other blog; Intelligent Speculator). So if you want a stake in Primerica, the controversial but surely profitable company, their stock is going to be offered to the public this morning!

A few numbers on the Primerica IPO

Shares are deemed to be offered at a price range between $12 to $14 at the beginning.

At the middle of this price range, Primerica stocks would sell at 6.74 times earnings.

The US median is 9.52 times, so it’s 29% less.

Its per share income as of 2009 would be $1.93.

Primerica (owned by Citigroup) hopes to raise 252M$ today with its first IPO since they were bought by Citi.

Primerica is selling 24% of the company today. So the control will remain in the hands of Citigroup.

Primerica reported an income of 495M$ in 2009 as its revenue rebounded after taking a plunge of 72% back in 2008.

My Opinion on Primerica, the stock, not the business opportunity

I actually think that Primerica will sell at the opening for a very reasonable price and it could be interesting to see how the stock will fluctuate throughout the year. At $13, I would have probably considered it for our 2010 stock picking contest (update tomorrow!).

It seems to be a solid company based on a huge, humongous, incredibly large number of salesmen (more than 100,000!). Since people will always need insurance, good or bad, insurance reps should continue to make a  good buck down the road.

How can I buy Primerica Stock?

Well, first you need a brokerage account and then, you need to know what the Primerica ticker is… drum roll……

Primerica Ticker: PRI

That’s it! You are set to buy a few shares of Primerica!

Will you buy Primerica stock?

Hey, I want to know if you want to jump in the boat with me? I am seriously thinking of giving it a try, any thoughts?

Looking to trade other stocks ? Try these introduction videos about:

How to trade Crude

How to trade Futures

How to trade Stock

How to trade Forex

How to trade Gold

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Comments

I will be buying stock and taking advantage of the small up surge of Citis stock to sell it I bought a lot when the stock was at $1 or so so there is a break even situation for me as I have bought before the down turn. But look forward to seeing PRI stock work it’s way into the market over the years!

Nice work TFB! I continue to appreciate your perspective on this blog. No matter what you say that I dont agree with! LOL!

@ CW,
If you would agree with me on everything, my blog would be pretty boring! ;-)

cheers,

TFB.

Nice thread. Never read up on PRI a lot but your thread covers a lot. Just checked the ticker and the stock seems to have closed just under $20/share. Up almost 5 bones on the day!

Hey, TFB, I want advice about real estate in Canada. My brother is moving to Mississauga and is interested in buying property there. Any suggestions?

Cheers back to you BTW!