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!
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.
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.
Well, first you need a brokerage account and then, you need to know what the Primerica ticker is… drum roll……
That’s it! You are set to buy a few shares of Primerica!
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?
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