Tuesday 22 November 2011

MetLife

People shy away from insurance companies because theyre volatile and risky. But in this downturn MetLife insurance company has dropped below its actual value. So if investors invested by looking at the tangible book value they will see they could make a profit of about 50%. The P/E ratio is currently at 8.5 so there is definite potential to make a lot of money because the company is worth a lot and has good values and a good direction. The only concern is that it has a high level of long term debt but that is only because they purchased American life insurance ocmpany from AIG but it is is still a strong company and it should add to its earnings. Should not expect a dividend release because most of the earning will be going towards the debt  but overall will see future growth. Should at least return to its tangible book value after the downturn is is overturned. Most analysts rated it as a strong buy.

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