AmTrust lower after getting Barron's treatment over weekend


AmTrust's (AFSI -3.5%) financial statements don't square with each other, writes Bill Alpert, noting - for instance - inconsistent loss reserves which have the effect of flattening earnings and capital. If company accounting is found wanting, says Alpert, the stock could trade all the way down to the industry average of 1.4x tangible book, bringing the price below $15.

AmTrust says it's more than adequately reserved, and notes regulators, auditors, and outside actuaries are all looking over the company's shoulder.

The pros and cons of this issue have been well-argued in a series of articles on Seeking Alpha (both the articles themselves and the comment threads).

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Comments (1)
  • pro8
    , contributor
    Comments (579) | Send Message
     
    This is probably a good buying opportunity. Unike before it was some outsider that had issues with the accounting not the accountants. This looks like nothing but a change of auditors by choice.
    4 Apr, 06:53 PM Reply Like
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