This column was originally published on RealMoney on July 12 at 1:45 p.m. EDT. It's being republished as a bonus for TheStreet.com readers."The time has come," the Walrus said,
"To talk of many things:
Of shoes -- and ships -- and sealing-wax --
Of cabbages -- and kings --
And why the sea is boiling hot --
And whether pigs have wings." -- from Lewis Carroll's The Walrus and the Carpenter My last post on AmerUs Group expressed doubt with respect to the interest of Aviva purchasing it. Now it looks like a deal might fly after all. My central point from that post still stands, though: The deal is rumored to have Aviva buying AmerUs in the low $70s. If you like AmerUs in the $70s (which implies a 13 multiple on 2007 earnings and 1.8 to 1.9 times book value), you should love the companies I've listed in the table below even more. I do not endorse purchases in all of the companies. I'm long only two of the names, Assurant ( AIZ) and MetLife ( MET). The table is only to draw attention to some companies that I deem cheaper than AmerUs, with better prospects.
|Life Worth Examining |
If you like AmerUs, you'll love...
|Symbol||Name||P/E ttm||Yield||Market Cap||P/2006E||P/2007E||P/B||PEG Ratio|
|AEL||American Equity Investment Life||14.2||0.40%||575.21M||7.9||6.4||1.24||0.56|
|NWLIA||National Western Life||11.3||0.00%||840.42M||N/A||N/A||0.97||N/A|
|AMH||AmerUs in the low $70s||14.9||0.55%||2.82B||14.5||13.1||1.87||1.47|
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