National General Holdings Corporation Case Study

951 Words4 Pages
National General Holding Corp offers an interesting bet The U.S. equity markets are close to the highs and many experts are calling for a correction. Investors should select firms run by a strong management, which are delivering good results. The markets reward stocks with strong earnings visibility, quoting at reasonable valuations. Such stocks are less likely to tank if a correction sets in. In this newsletter, we have picked National General Holdings Corp.(NGHC), an insurance company, run by a smart management team, working towards increasing share holder’s value. National General Holdings Corp., headquartered in New York City, is a specialty personal lines insurance holding company. National General traces its roots to 1939, has a financial strength rating of A- (excellent) from A.M. Best, and provides…show more content…
What if the stock breaks out of the triangle, but turns back immediately? In order to protect our capital, we shall keep the stop loss at 19.9 level, which is a tad below the recent low formed just before the results were released. If the stock breaks down below the 19.9 levels, then the bullish ascending triangle pattern fails, which will likely bring the stock down to the support levels of 18 or 17.43. Conclusion It is difficult to find a stock on a strong growth path at reasonable valuations. There is a fine balance between growth, profitability and debt. National General Holding Corp maintains that perfect balance of attaining growth, without sacrificing their profitability and leveraging excessively. The technicals of the stock also suggest that it is ready to start a new bull run. Hence, traders should utilize the opportunity to enter the stock on a breakout for the long-term and keep a suitable stop loss depending on their individual risk

More about National General Holdings Corporation Case Study

Open Document