RE: Hit a ceiling
I have no information on electronically operated trading.
I agree that KFS has been a frustrating trader over the last several years. However it has had a positive and satisfactory return it just hasn't yet realized its full potential which is the frustrating part.
Its my opinion that when one finds a stock that is trading well below its potential and has little downside risk, one should just keep it as a long term investment. Trade with other funds if you wish. The potential will be realized at some point and an investor can not afford to miss a big winner.
I justify my 'little risk' statement by pointing to the $60 per share conservatively invested portfolio which under almost any condition would provide earnings that justify the current stock price.
As for its potential to be a big winner one has to believe that at some point in time all the stars will line up for KFS. By this I mean that:
1. Investment returns will some day be greater than the current tepid 4 to 5% currently earned.
2. A hard market will allow KFS to realize at least the 93% combined ratio it prices for.
3. Conservative reserving practices allow redundancies to become apparent in reserve valuations.
'All the stars alligning' could generate earnings in the $5 to $6 range. It would also generate 'market enthusiasm' which means an expanded P/E multiple in the 12 to 15 range. Realising these parameters will generate a very high stock price. In the meantime the rate of return will be adequate with little risk.
Remember the glory days of FFH when it went from $15 to $600 on fundamentals not as strong as those of KFS.
The potential is there for KFS! ....... Where will you be?