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Institutional Desktop Pass members
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. PRICE TO EARNINGS (lower is better) |
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. PRICE TO SALES (lower is better) |
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. PRICE TO BOOK VALUE (lower is better) |
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. PRICE TO TANGIBLE BOOK VALUE (lower is better) |
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. SCORECARD RATING SYSTEM |
Mgt |
Market |
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Total |
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1-5, 5 is high |
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20 is perfect |
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1 to 5 |
1 to 5 |
1 to 5 |
1 to 5 |
20 max |
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. Business Model Rating |
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A = high growth market, potential leader; B = more competitive market; |
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C='public venture capital' |
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. Opening Premium Star Ratings: |
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For DesktopPass members only |
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PLUS unique, exclusive COMPARE & CONTRAST research |
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Here's an example: |
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================================================================ |
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Financial Performance & Scoring -- © 2003 Gaskins IPO Desktop/IPOdesktop |
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Updated Sunday 9-14 at 12:00 pm pacific |
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Opening Premium Star Ratings: |
for DesktopPass Members |
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Business Model Rating Criteria |
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A = high growth market, potential leader; B = more competitive market; C='public venture capital' |
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. IPO Price to annualized Sales Ratio |
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Numerator |
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Denominator |
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IPO market capitalization… |
Last quarter's revenues times 4 |
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(post-IPO # of shares times mid-point of IPO price range) |
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. IPO Price to annualized Earning (loss) Ratio |
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Numerator |
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Denominator |
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IPO market cap |
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Annualized Earnings |
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Week of Sept 15 |
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NAME/symbol |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
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Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
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National FinPtr(NFP)* |
693 |
1.6 |
22 |
1.6 |
-25.6 |
29% |
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*earnings adjusted for amortization & impairment to compare with others in the sector, see NFP below |
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Financial performance, ratings, scorings & analysis |
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Last 4 quarters |
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IPO |
Price / |
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1 |
2 |
3 |
4 |
Mkt Cap |
Sales |
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(when available) |
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(mm) |
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Week of Sept 15 |
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National Fin Ptr |
NFP, 3-Stars, C+ (see scorecard below) |
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Distributor of financial services products |
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New York, NY |
2001 yr |
2002 yr |
June 6 mos |
June 3 mos |
IPO Mkt |
Price / |
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Commissns, fees(mm) |
$278 |
$361 |
$216 |
$108 |
Cap (mm) |
Sales |
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Gross Margin (%) |
22.1% |
20.6% |
21.1% |
21.1% |
$693 |
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Net income (mm) |
-5.7 |
11.6 |
6.4 |
3.2 |
@$22 |
1.6 |
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Profit (loss) Margin % |
-2.1% |
3.2% |
3.0% |
3.0% |
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Adjustment to compare p/e ratios with companies listed below |
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. Add Amortization |
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8 |
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. Add Impairment (loss--NFP overpaid for acquis) |
10 |
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Less taxes (48% rate) |
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8.6 |
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Add to net income |
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9.4 |
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Adjusted income |
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15.8 |
7.9 |
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VALUATION RATIOS |
IPO Mrkt |
Price / |
*Price / |
Price / |
Price / |
% offered |
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Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
in IPO |
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National FinPtr(NFP) |
693 |
1.6 |
22 |
1.6 |
-25.6 |
29% |
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*Adjusted for amortization & impairment, after taxes, to compare with the sector |
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SCORECARD |
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Mgt |
Market |
Market Do- |
Proprie- |
Total |
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1-5, 5 is high |
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Growth |
mination |
tary |
rating |
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20 is perfect |
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2 |
2 |
2 |
1 |
7 |
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Business |
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. Distributes financial services products to high net worth individuals and small-to-medium-sized |
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corporations. Founded in 1998 |
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. Operates a national distribution network with 1,300 producers in 40 states and Puerto Rico with |
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132 owned firms and 180 affiliated third-party distributors |
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. Historical results achieved through acquisitions & internal growth |
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Products & Services |
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. Life insurance and estate planning, corporate and executive benefits; |
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and financial planning and investment advisory services |
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Suppliers |
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. AIG American General, American Funds, Fidelity Advisor, GE Capital, The Hartford, John Hancock, |
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Lincoln Financial Group, Phoenix Life Insurance Company and Travelers Life and Annuity |
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Risk |
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. Eliminaton or modification of the federal estate tax could adversely affect the life insurance |
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and estate planning business |
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Competitors |
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. National competitors include Marsh & McLennan Companies, Inc., Aon Corporation, Hilb, |
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Rogal & Hamilton, Arthur J. Gallagher, U.S.I. Holdings, Brown & Brown, & Willis Group Holdings |
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. Regional competitors include local brokerage firms and regional banks, consulting firms, |
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third-party administrators, producer groups and insurance companies |
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Use of $200 mm Proceeds |
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. 39% to NFP, 71% to selling shareholders |
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. Repay debt |
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Dividends |
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. NFP expects to pay $.10 per quarter in cash dividends |
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======================================= |
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COMPARE & CONTRAST -- insurance brokerage & financial products |
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Earnings projections, recommendations, prices, ratios as of 9/12/03 |
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The last three companies from this industry sector to go public are listed |
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below, with the underlying industry sector index. |
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NAME/symbol |
Mrkt |
Price / |
Price / |
Price / |
Price / |
Price |
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Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
9-12-03 |
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Hub Int'l (HBG) |
521 |
1.8 |
12.9 |
1.6 |
-21.7 |
17.40 |
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. Hub International (NYSE: HBG), is a Chicago-based insurance brokerage offering insurance, |
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employee benefits, investment and risk-management products & services |
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. +24.3% from $14 IPO on 6-7-02 |
52-week Price Range |
High $19.66 Low $11.45 Last $17.40 |
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. # of brokers following the co.: 4 |
Ave rating: "Strong Buy" |
Ave price target: |
$18-$20 |
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. Estimated Consensus EPS: |
Dec./2002A: $1.06; Dec./2003E: $1.16; Dec./2004E: $1.34 |
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U.S.I Holdings (USIH) |
580 |
1.7 |
19.3 |
2.7 |
-6.7 |
11.92 |
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U.S.I. Holdings (Nasdaq: USIH), a San Francisco-based distributor of insurance & financial products |
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and services |
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. +19.2% from $10 IPO on 10-22-02 |
52-week Price Range: |
High:$12.61 Low:$9.60 Last:$11.92 |
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. # of brokers following the co.: 5 |
Average rating: "Buy" |
Ave price target: |
$13-$14 |
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. Estimated Consensus EPS: |
Dec./2002A: $0.70; Dec./2003E: $0.97; Dec./2004E: $1.16 |
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Willis Grp (WSH) |
4620 |
2.3 |
14.4 |
4.4 |
-53.1 |
30.01 |
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Willis Group Holdings (NYSE: WSH), a Bermuda-based insurance broker |
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. +122.3% from $10 IPO on 6-11-02 |
52-week Price Range: |
High:$37.14 Low:$23.48 Last:$30.47 |
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. # of brokers following the co.: 11 |
Average rating: "Buy" |
Ave price target: |
$30 |
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. Estimated Consensus EPS: |
Dec./2002A: $1.62, Dec./2003E: $2.20, Dec./2004E: $2.56 |
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Ratio comparison summary -- based on annualizing last reported quarter's results |
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NAME/symbol |
Mrkt |
Price / |
Price / |
Price / |
*Price / |
Price |
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Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
9-12-03 |
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As reported in the financial statements |
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Hub Int'l (HBG) |
521 |
1.8 |
12.9 |
1.6 |
-21.7 |
17.40 |
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U.S.I Holdings (USIH) |
580 |
1.7 |
19.3 |
2.7 |
-6.7 |
11.92 |
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Willis Grp (WSH) |
4620 |
2.3 |
14.4 |
4.4 |
-53.1 |
30.01 |
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National Fin Ptr |
693 |
1.6 |
54 |
1.6 |
-25.6 |
21 to 23 |
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*When Price-to-Tangible Book Value is negative, a higher absolute number is better |
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Adjusted for amortization & impairment, after taxes (note: USIH pays no taxes) |
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Hub Int'l (HBG) |
521 |
1.8 |
12.3 |
1.6 |
-21.7 |
17.40 |
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U.S.I Holdings (USIH) |
580 |
1.7 |
11.2 |
2.7 |
-6.7 |
11.92 |
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Willis Grp (WSH) |
4620 |
2.3 |
14.4 |
4.4 |
-53.1 |
30.01 |
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National Fin Ptr(NFP) |
693 |
1.6 |
22 |
1.6 |
-25.6 |
21 to 23 |
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Notice that NFP has... |
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. Lowest price-to-sales ratio |
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. Tied for the lowest price-to-book ratio |
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. 2nd 'best' price-to-tangible book value ratio |
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. Highest P/E ratio, based on annualizing last quarter's reported results |
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Industry Sector Index |
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DJ Insurance, Property & Casualty Index: |
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52-week Price Range: |
High: 267.92 (9/5/03), Low: 207.77 (3/13/03), Dec. 31, 2002: 239.30 |
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2003 Price Range: |
High: 267.92 (9/3/03), Low: 239.30 (3/13/03), Last: 267.92 (9/5/03) |
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One-Year Percentage Change: |
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Insurance, Property & Casualty Index: up 10.85% |
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Nasdaq Composite: up 43.46% |
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================================================================ |
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