Post by
ROIcrusader on May 20, 2022 11:30am
What's the deal w MFC
I haven't done a deep dive into MFC, looking for someone who might see something I don't. I've been lurking for a while, looking for the next sector or trend to hop into by flopping some oil gains (thank you stock market gods for good fortune) in the next 12-24 months.
MFC looks great from a value perspective, and insurance companies can do well in increasing interest rate environments, am I wrong?
The metrics look great, low PE, high dividend. What gives with the stock price? Are interest rate increases really impacting this name this much?
The 1, 3, and 5yr stock price for MFC are negative (sans dividends).
thanks and GLTA
Comment by
ROIcrusader on May 20, 2022 12:28pm
this is likely why: https://www.investopedia.com/ask/answers/061515/how-much-do-changes-interest-rates-affect-profitability-insurance-sector.asp
Comment by
stocktalk on May 20, 2022 1:36pm
We have been at free money, basically zero rates since covid start. Any increse back to normal rates will increase profit margins immensely.