On October 24, 2009
Are Property Insurers Seeing the Twilight of the Gods?
The prevailing wisdom on Wall Street is that when stocks rise on bad news we’re in a bull market, and when they fall on good news it’s a reversal of fortune. So it was interesting to see that the day after property insurer Chubb reported third quarter earnings had doubled, its shares dropped $3.15 or nearly six percent. And Travelers, which also reported that day, didn’t fare much better. The brief euphoria when Travelers announced that profits had quadrupled didn’t carry through to the weekend as its shares fell nearly one percent. One reason could be that Stifel Nicolaus analyst Michael Paisan lowered his opinion on Chubb to “hold” from “buy,” according to Bloomberg News. In analyst lingo, a “hold”…
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