With the markets tumbling lower today on concerns with North Korea, two life insurers provided upbeat reports, Manulife and Sun Life.
Credit Crisis Disaster
Both insurers have been in my portfolio for many years but Manulife has brought in more profits simply because the stock cannot actually recover from the losses of the credit crisis. Back in 2007 the stock was trading above $40 and paying 26 cents a quarter in dividends. By 2009 the stock had plunged to $10 and two stock offerings at ridiculously low prices heavily diluted the share valuation. Investors cannot forgive or forget the losses they took on the stock. Those large share offerings increased dramatically the number of shares available which is one major reason the stock has had a tough time recovering.
Manulife Stock Trade Alerts
This article discusses the trades done today in the 4.3% collapse in the stock using a modified version of the Home On The Range strategy. This strategy is designed to earn income through selling options on stocks that remain range bound such as utility stocks.
The rest of this article is for FullyInformed Members.
Manulife Financial Stock (MFC) Trade Alert After Earnings – Aug 10 2017
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. The author assumes no liability for your investment decisions. Read the full disclaimer.