Can lose a bit of context as I try to cut content to keep things short.
The entirety of the sentence your quoting:
"With coastal insurance being a tough niche to succeed in, larger insurers have retreated from these markets, giving Kingstone a major competitive advantage over the remaining competition due to its expertise and local presence in this market."
Can be expanded to:
"All the large “sophisticated” insurers have left coastal markets after multiple years of poor underwriting performance (starting with Andrew back in 1992). The remaining competition is smaller regional insurers that Kingstone has a competitive advantage over due to local presence, experience in the market, and an underwriting advantage from some of the improvements discussed in the turnaround. This is supported by the three major regional competitors exiting the market (Adirondack, AmGUARD, and Mountain Valley)."
It's been on quite the run YTD but I think this being an underfollowed micro cap + trading at a cheap multiple + having a near term growth catalyst not priced in all support my case for further upside.
ACIC (another underfollowed insurer) was up +600% 10 months into 2023 and went up another +80% after. Can’t rule out a stock, especially an inflecting micro-cap, just because of the price movement over an arbitrary period of time.
Good report. Maybe time for a turnaround. Seems P&C insurers have pricing power now. I recall KINS also got stung by an adverse opinion by the auditor with regard to internal controls over financial reporting.
I’ve been very bullish on insurance. Bought $KINS under $4. The turnaround is real!
"larger insurers have retreated from these markets, giving Kingstone a major competitive advantage over the remaining competition"
What is the logic here?
Can lose a bit of context as I try to cut content to keep things short.
The entirety of the sentence your quoting:
"With coastal insurance being a tough niche to succeed in, larger insurers have retreated from these markets, giving Kingstone a major competitive advantage over the remaining competition due to its expertise and local presence in this market."
Can be expanded to:
"All the large “sophisticated” insurers have left coastal markets after multiple years of poor underwriting performance (starting with Andrew back in 1992). The remaining competition is smaller regional insurers that Kingstone has a competitive advantage over due to local presence, experience in the market, and an underwriting advantage from some of the improvements discussed in the turnaround. This is supported by the three major regional competitors exiting the market (Adirondack, AmGUARD, and Mountain Valley)."
Up 400%?
It's been on quite the run YTD but I think this being an underfollowed micro cap + trading at a cheap multiple + having a near term growth catalyst not priced in all support my case for further upside.
ACIC (another underfollowed insurer) was up +600% 10 months into 2023 and went up another +80% after. Can’t rule out a stock, especially an inflecting micro-cap, just because of the price movement over an arbitrary period of time.
Fair enough point. Thanks!
Good report. Maybe time for a turnaround. Seems P&C insurers have pricing power now. I recall KINS also got stung by an adverse opinion by the auditor with regard to internal controls over financial reporting.
Send a good part of the turnaround already happened. No?