Q: The last Q&A about TSU appears to be from February of this year. Can I get your updated opinion, please?
5i Research Answer:
We continue to like TSU - it is a small ($1.7B) specialty insurance company, trading at 11.4X forward earnings, with moderate expected forward sales and earnings growth rates, and historical sales growth has been strong. There were a few issues with a writedown and impairment in the past, but the company looks to be almost over these issues now, and margins are now back on the rise, with a trailing-twelve month ROE of 17%. The stock has been trading in a range of $30 to $50 over the past few years, and given enough time and improving results, we think it can begin to break out of this range. We like the industry it operates in, and we feel it can do well in bearish environments.