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During the IPO season Francis Gaskins, editor of IPOdesktop.com, regularly appears on CNBC TV, Bloomberg, thestreet.com & other financial cable channels. On the day of the Visa IPO he appeared on four cable TV financial shows including Bloomberg & CNBC. Over the past five years he has... More
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  • Buffett's Symetra (SYA) IPO expected at 85% of book value, pays dividend 0 comments
    Jan 20, 2010 8:19 AM | about stocks: AET, CI, UNH, AET, CI, HUM, ANTM, XLV, IYH, VHT

    Symetra Financial (SYM) scheduled to IPO Friday, January 22
    Price range midpoint is $13
    Seems competitively priced at 85% of book.  Expected dividend considerably highter than the sector norm.
     
    IPOreport:  http://www.gaskinsco.com/linkto-sya.shtml

    Annual div yield
    Symetra Financial (NYSE:SYA)    1.54%
    Aetna Inc. (NYSE: AET)    0.12%
    CIGNA (NYSE: CI)    0.11%
    UnitedHealth (NYSE: UNH)    0.09%

    SYA DIVIDEND POLICY
    Intends to pay quarterly cash dividends at an initial rate of $0.05 per share
    Annual rate of 1.5%

    BUSINESS
    Life insurance company focused on profitable growth in select group health, retirement, life insurance and employee benefits markets.
    Operations date back to 1957 and many of agency and distribution relationships have been in place for decades.
    Headquartered in Bellevue, Washington and employ 1,100 people in 16 offices across the United States, serving 1.8 million customers.

    COMPETITION -- compare
    Symetera (SYA)
    P/E: 11.1
    Div/yield:  $.20 --1.5%

    With
    Aetna Inc. (NYSE: AET)P/E: 11.39
    Div/yield: $.04 -- 0.12%

    CIGNA (NYSE: CI)
    P/E: 13.77
    Annual div/yield: $0.04 -- 0.11%

    UnitedHealth Group Inc. (NYSE: UNH)
    P/E: 11.60
    Annual div/yield: $0.03 -- 0.09%
    Sources:  Google finance & SEC filings

    USE OF $208mm in IPO PROCEEDS
    From sale of  17.3mm shares.  Shareholders intend to sell 9.7mm shares
    For general corporate purposes, which may include contributions of capital to insurance and other subsidiaries.



    Disclosure: no positions

    Stocks: AET, CI, UNH, AET, CI, HUM, ANTM, XLV, IYH, VHT
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