White Mountains Insurance Has Problems of Its Own

Jun. 4.08 | About: White Mountains (WTM)

I just wanted to remind everyone that White Mountains Insurance (NYSE:WTM) is holding its 2008 Annual Investor Information Meeting on June 17 in New York City. The company has no analyst coverage that I am aware of, and doesn't market very much, so the analyst day is a fine opportunity to understand the company better. If you aren't familiar with the company, WTM is a property casualty insurance company with three main businesses:

  • OneBeacon
  • White Mountains Re
  • Esurance

The stock has been battered along with other financials over the last year, selling off from $611 down to a low of $449 a share. This was not the only reason it sold off, as there are issues in some of WTM's businesses that may make it harder for them to grow book value as robustly as they have historically.

If you look at the chart below, WTM looks like it has hit a technical "multiple bottom" in the $450-460 range. It has tested this level three times and bounced off of it. This is also right around its book value. Although I do not worship at the altar of technical analysis, I do recognize its value in picking entry and exit points, when fundamentals provide confirming evidence.



I have written on WTM previously in these posts:

White Mountains Insurance

I also posted my notes from the analyst day last year. It is a long post and is more or less a transcript of the event.

You can listen to the webcast of the event if you can't make it up to NYC on that day. The direct link is on the WTM web page.

Disclosure - I am long WTM.