Investors Title Offers The Ultimate Margin Of Safety

Mon, 01/23/2012 - 12:27 EDT - Seeking Alpha

By Seth Barkett:Financial markets are inefficient. To prove my point, take a look at Investors Title Company (Nasdaq: ITIC). Investors Title Company offers title insurance coverage to both owners and mortgagees of real estate. It also provides tax-deferred real property exchange services, investment management and trust services as well as management services to title insurance agencies. The company is currently trading at a 14% discount to its net cash and investments value and a 33% discount to its net tangible book value. If markets were truly efficient, Investors Title Company would be trading at a minimum of $49 per share but probably much closer to $76 per share (over a 100% premium). Why is the stock worth so much more? Let me explain. As of September 30, 2011, the company had $126.2 million of total investments ($83.6 million of fixed income, $17.8 million of equities, $21.7 million of certificates of deposit, andComplete Story »

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Investors Title Offers The Ultimate Margin Of Safety

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