Guru John Paulson, founder of Paulson & Co., is the legendary hedge fund investor well-remembered for generating returns of up to 600% by betting against mortgages in the 2008 market crash. In his portfolio weighted towards EFTs, healthcare, communication services and basic materials, Paulson & Co. list 86 stocks with a total value of $16.27 billion as of Dec. 31, 2012. On March 7, 2013, Paulson reduced his position as the largest shareholder of CNO Financial Group Inc. (CNO) by 22.13%. After the trade he owns 16,751,527 shares, with a current price of $11.58, and a change from average up 4%. The current CNO share price is $11.52.
CNO Financial Group Inc. is a holding company for a group of insurance companies operating throughout the U.S. The company’s main insurance subsidiaries are Bankers Life and Casualty Company, Washington National Insurance Company and Colonial Penn Life Insurance Company. The CNO mission is to serve retirement age Americans for a more secure retirement.
CNO Financial Group Inc. has a market cap of $2.56 billion.
The company has a P/E ratio of 12.03, a P/B ratio of 0.51 and a P/S ratio of 0.7485.
GuruFocus conducted a thorough financial and performance checkup on CNO and found these warning signs: A low Altman Z-score of 0.17 shows a company in the distressed zone. CNO Financial Group Inc. revenue has been in decline for the last five years, and the company keeps issuing new debt, $614.5 million of debt over the past three years. Other warnings signs are: The CNO price ($11.55) is close to 5-year high of $12.20. The CNO P/S Ratio (0.7485) is close to a five-year high of 0.7485, and the company had operating loss over the past three years.
A good sign is that the CNO stock dividend yield (0.69%) is close to a one-year high of 0.66%.
According to Bloomberg, CNO has a history of outperforming estimates.
CNO’s revenue per share annual growth:
John Paulson’s CNO holding history:
His top buys, top sells and top holdings as of fourth quarter 2012:
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