Maredin Capital Advisors
Long/short equity, deep value, special situations, growth

Blue Capital Reinsurance Holdings Considerable Capital Appreciation And Yield Opportunity In New, Underfollowed Reinsurer

Blue Capital Reinsurance Holdings (NYSE:BCRH)

Considerable Capital Appreciation and Yield Opportunity in New, Underfollowed Reinsurer

Recommendation

Buy: $45 Price Target

Current Price: $19.7

Upside Potential: 130% + a 12.5% dividend while you wait

Summary

Blue Capital Reinsurance Holdings (ticker: "BCRH") is a closely held, recently IPO'd, non-traditional reinsurance company. Since BCRH only has one quarter of operating history, investors are unable to use algorithms to decipher what the business will look like, and subsequently, what it's worth going forward.

However, because of its relationship with Montpelier (TICKER:MRH), and unique positioning in the reinsurance business, BCRH should enjoy strong profits and dividends long-term. Based on BCRH estimates, statements, and recent quarters' results, the current year's dividend yield...

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