Lancashire - Shares Down 15% Despite Favorable Q1 2014 Results
- Q1 2014 results point to significant undervaluation of Lancashire, which currently trades at PE=6.5 and 1.4xBV.
- Investors have recently sold down on concerns about unexpected CEO resignation, although business appears to be in a better position than before.
- Change of CEO should have minimal effect on daily operations as well as on capital allocation decision within the company.
- Special dividend announcement is expected in H2 2014, which will likely boost the share price.