Essent Group Stock is a Potential Tenbagger



🎮 As you know, I had a stock in my portfolio which was a Tenbagger recently, GameStop $GME . 𝘼 𝙩𝙚𝙣𝙗𝙖𝙜𝙜𝙚𝙧 𝙢𝙚𝙖𝙣𝙨 𝙖 𝙨𝙩𝙤𝙘𝙠 𝙩𝙝𝙖𝙩 𝙘𝙖𝙣 𝙜𝙖𝙞𝙣 𝟵𝟬𝟬% 𝙤𝙧 𝙢𝙤𝙧𝙚 𝙞𝙣 𝟭𝟬 𝙮𝙚𝙖𝙧𝙨 𝙤𝙧 𝙡𝙚𝙨𝙨. If you're going to read my initial analysis of GameStop from September 2019, the expected returns were only 35% in a year. Even when I saw the inevitable short squeeze, I only said that it could gain 500%. But I always knew that it could be a tenbagger or more. The expected returns are always after taking a margin of safety and I like being conservative.


🚀 Even my analysis of Essent Group $ESNT is pretty conservative but when we look at the best case scenario, 𝙞𝙩 𝙞𝙨 𝙖 𝙥𝙤𝙩𝙚𝙣𝙩𝙞𝙖𝙡 𝙩𝙚𝙣𝙗𝙖𝙜𝙜𝙚𝙧. It is not going to be like GameStop, gaining so much in a short period of time but if it can gain 900% in 10 years, it is a tenbagger, and I think that it is possible.


🏠 Essent Group is one of the 𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝙈𝙤𝙧𝙩𝙜𝙖𝙜𝙚 𝙄𝙣𝙨𝙪𝙧𝙖𝙣𝙘𝙚 (PMI) businesses and its 2020 market share of net insurance written was the second largest in the industry. We have record low mortgage rates, the work from home trend, asset price inflation and all of this is causing higher demand for housing and consequently for mortgages.


💸 New Insurance Written, Insurance In Force, Net income, the investment portfolio and book value have 𝙖𝙡𝙡 𝙗𝙚𝙚𝙣 𝙜𝙧𝙤𝙬𝙞𝙣𝙜 𝙗𝙮 𝙤𝙫𝙚𝙧 𝟮𝟱% 𝙖𝙣𝙣𝙪𝙖𝙡𝙡𝙮 in the last 5 years.


💰 Even in a 𝙘𝙤𝙣𝙨𝙚𝙧𝙫𝙖𝙩𝙞𝙫𝙚 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣 𝙖𝙣𝙖𝙡𝙮𝙨𝙞𝙨 where we use a 15% growth for the book value, the expected annual returns is over 25%, meaning it is a potential tenbagger. We didn't take into consideration the fact that Essent Group can increase their dividends or buyback shares.


Watch the full video on YouTube:

https://www.youtube.com/watch?v=h_wN1AT-jto&list=UUPO3uUyoXSaFWG-Ldq1mqEQ&index=1


Full analysis of Essent Group:

https://ishfaaqpeerally.teachable.com/courses/662813/lectures/30604916


 

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