I saw this on Morningstar.com and thought it was a good read:

LandAmerica Financial Group (NYSE:LFG - News)

LandAmerica proved that it can create long-term value and share it with stockholders by paying them nice dividends and buying back stock. Morningstar analyst Jim Ryan, who covers LandAmerica, thinks that the main risk with this name is a prolonged real estate recession, because title insurers rely on real estate transactions to generate revenue. That said, Ryan thinks that at 50% of book value, the stock looks very attractive.

The option strategy:  March 2008 put (about 175 days to expiration) –Strike: $35 –Premium: $3.85 –Cash Requirement: $31.15 (or $3,115 per one contract) The range of outcomes: If the option expires at or out of the money, the investor will earn a 12% return for 180 days, or 20% annualized, along with the ever-present 5% on the cash in the account. If the investor has to buy the underlying stock at the strike of $35, or a cost basis of $31.15, it is a screaming deal given Ryan’s $87 fair value estimate.

Socialize