undervalued insurance stock, page-20

Agree.

At 30cents (call it $70mm market cap), you end up with -

(a) a PE of around 10-to-1 (which is around a 38% discount to the sector);

(b) a discount to net assets;

(c) intangibles at a net cost (after deducting capital) of around $9.2 million (against a "market" valuation of around $32 million - if you take a market valuation to be roughly 4 x earnings for the purchased GWP component).

In reality, to bring CIX back into line with the sector you would actually need a price of around 42 cents. With a "buyback floor" estimated at somewhere around 33 cents (that is my guess, based on a discount to net assets, and based on the August 2007 BB discount to net assets where the BB was triggered), CIX is a safe bet between 34 and 38 cents.

Still upside on this one - in my view, still plenty of fish in that barrell to take aim at.

Regards
Kit