| Daytrade short target $47-43, stop $53. RNR re-insures insurance companies for catastrophic losses - which is what Frances is causing right now. The major companies that insure property and even travel insurance are ALL and AIG, but they're huge and pretty well funded. However, they've also bought re-insurance coverage from companies like RNR. I think RNR and other re-insurers stand to lose a relatively bigger chunk of profits than the major insurance companies. RNR is already in a gradual overall decline since peaking in April. I am looking for the long downtrend to continue, with a big spike down when the damage from Frances gets assessed. Eventually, they're all going to have to raise everybody's rates to cover the extrordinary costs these storms are causing; but they're all going to take a revenue/profit hit first. |
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