AGO - Looking for value in troubled times

NYSE:AGO   Assured Guaranty Ltd.
With a book value per share of $50 and an Earnings Per Share of 6.6, we can estimate a fair value of around $86. Bear in mind that valuation of financial companies is very hard, so even when this math may be right, financial companies tend to suffer the most when the finance and capital markets overall are not performing nicely.

That sounds great, but let's face it, there is a lot of other things to look at. From the technical point of view, the market is a strange place right now, and $AGO is not an exception. The chart is hanging by a thread and not looking at all ideal... BUT, not dead yet!

So here is the plan, I am going to put a very small amount of this on my portfolio, as a long play, but with a short eye on the stop. If from the technical side of things this doesn't pick up, I am not going to maintain a long position just for value, I will sill keep an eye on it, but re-buy when the chart looks better.

Stop at 33.90, a look at the 38.50 area to the upside as the first control point.

Let's see how this goes!


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.