Sarfaraz A. Khan
Energy, commodities, macro, long only

HCI: This Stock Is Up +90% YTD, So Why Should You Avoid It?

Fortune Magazine has recently released its list of 100 fastest-growing public companies, which is based on the top and bottom line growth as well as the stock performance of the U.S. listed firms. A small Florida based insurer HCI Group (NYSE:HCI), previously called Homeowners Choice, was able to secure the #13 spot on that list. The company has also joined the S&P Small Cap 600 Index on Friday, in the Property and Casualty Insurance sector, replacing Maidenform Brands (NYSE:MFB) which is being removed. So far this year, HCI Group's shares have been up an impressive +90% and have caught the attention of Jim Cramer, who thinks that you should be buying this stock. However, I believe...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details