Gainsco"Gainsco (GNA, AMEX, around $11) continues to...


October 16, 1991|By Opinions on stocks by investment experts. Compilted by Steve Halpern for Knight Riddder.


"Gainsco (GNA, AMEX, around $11) continues to follow a very steady growth track. Earnings leaped 41 percent in the latest quarter," says Market Mania of Pacifica, Calif.

"In addition, last quarter, the company declared its first-ever cash dividend. This is an extremely well run property and casualty insurer which has positioned itself well in the niche market of underwriting surplus lines. The stock has had a solid uptrend all year long and may be poised to consolidate its gains. We consider the issue a buy near $10."

American General

"American General (AGC, NYSE, around $41), a leading insurance-based financial services firm, should see earnings rise about 9 percent in 1991 to $4.05 per share," says The Outlook of New York City.

"Next year, we expect profits to range between $4.50 and $4.65 a share.

Home-service life insurance is chalking up double-digit growth.

Trading at a modest 10 times earnings and yielding an above-average 5 percent, the shares are attractive for their long-term total-return potential."

Cigna Corp.

"We are maintaining our buy recommendation on CIGNA Corp. (CI, NYSE, around $45), says Charles Gates of First Boston.

"The company reported second-quarter earnings per share of $1.84 vs. $1.75. While the stock has recovered from its October 1990 low, it remains 36 percent below its 1989 high and near the bottom of its historic price-book value range. Our 12-month target is $49. We would also note that the stock has traded above $50 a share in each of the past eight years. Buy."

American Family

"Because of its recent decline in price as well as currently lower interest rate levels, we are raising our rating on American Family (AFL, NYSE, around $24) from a hold to a buy," says Steven Schwartz of Ladenburg, Thalmann & Co.

"We now believe these shares have again become undervalued. The company underwrites cancer, life, Medicare supplement, accident, and long-term nursing-care policies. For 1991, we look for earnings of $1.75 per share followed by earnings of $2.05 in 1992. Our target price is $32."

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