Assured Guaranty At 45% Of Adjusted Book Value Is Too Good To Ignore

About: Assured Guaranty Ltd. (AGO), Includes: AIG, AMBC, MBI, SYCRF
by: Tim Travis
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Tim Travis
Long only, Deep Value, registered investment advisor, portfolio strategy

On February 22nd, AGO reported 4th quarter and full-year financial results that were very impressive.

The company is the clear-cut leader in a niche insurance industry, with a track record of financial success through turbulent times.

At a recent price of $34.68, Assured Guaranty trades at just 62% of non-GAAP operating book value per share, and 45% of adjusted book value per share.

Most problems that the company faces are known and quantifiable.

Most importantly, the stock is priced at levels that indicate extreme pessimism.

In early 2018, equity markets seem to be priced at historically elevated valuations. While many may take comfort in following the crowds via so-called passive investing, we at T&T Capital Management (TTCM) prefer to invest