Wednesday, October 31, 2007
New Chinese Lotto Ticket: CISG
|CISG CNinsure IPO prices above range; Chinese insurance agency (16.00 )|
|CNinsure (CISG), a Chinese insurance agency and brokerage, prices its IPO at $16, above its expected range of $13-15, which had been raised from $11-13. Each ADS represents 20 ordinary shares. The co employs 11,000 sales reps and 170 sales outlets operating in eight provinces. CISG began in the automobile insurance area then expanded into property and casualty. Its experience in the life insurance segment is more limited as it entered this market in Jan 2006. The co intends to expand its service offering by providing insurance claims adjusting services, such as assessment, survey, authentication and loss estimation, beginning in Q4 2007. As an insurance agency, CISG does not assume underwriting risks. Instead, the co sells insurance products underwritten by insurance cos operating in China. CISG gets paid by insurance cos, typically on a percentage of the premium paid by the insured. The insurance agency and brokerage sector in China is at an early stage of development and highly fragmented. As such, CISG plans to increase its market share by aggressively expanding its distribution network through acquisitions, recruitment and franchising. China's insurance penetration rates (insurance premiums as a percentage of GDP) are low at just 1.7% for life insurance and 1.0% for non-life insurance vs 4.0% and 4.8% in the US. Continued economic growth and the aging of the Chinese population should drive growth of China's insurance industry. The co is profitable and posted 1H07 revenue of US$22.7 mln, up 62% yr/yr, on impressive 32% operating margin... Briefing Note: There is a lot of interest here as the Chinese sector has been hot. Also, investors see it as a secondary play on China Life Insurance (LFC 99.16) which has been a huge mover, up 220% over the past year. This is an 11.7 mln ADS deal (each ADS worth 20 ordinary shares), led by Morgan Stanley. Wm Blair, Fox-Pitt, and Piper were also invovled. (IPOXX)|
Crude! What the flu with CHK?? Looks like that shit is breaking out of a five year channel.
You still think it's a dawg, dawg?
Unless you seem a real short term stab you can grab, then of course, go for it.
In other news thanks to fuck face broker a I bought more JCG yesterday at 35.10. Thanks a lot there guy for keeping me from buying at 36. :)
Every dawgg has its day. CHK is no different. It just depends on what you think of natty prices in the future.
If I were a prolific lottery ticket purchaser and a quack scientist, I would bet on jj's version of cold fusion and the palladium supercycle. Natty will be worthless and flared off at the wellhead, viz a vis, "waste gas".
Never been on there before -- thank me later when it's $17+.
P&F looks good to $18:
SA to $100 or BA is an eyeless fuck.
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