Monday, January 24, 2011

Internet insurance play

This morning I added InsWeb (INSW) to the Barchart Van Meerten Speculative portfolio for positive price trends.  This is a truly speculative issue that we are buying just ahead of its February 7th earnings announcement.  If wrong it could tank in a heartbeat.

InsWeb Corp. operates an online insurance marketplace that enables consumers to shop online for automobile, term life, homeowners, renters and individual health insurance and obtain insurance company-sponsored quotes for actual coverage. InsWeb's marketplace brings consumers and insurance companies together online, providing consumers with the insurance they need and insurance companies with the customers they want. InsWeb's service is free to consumers; its principal source of revenues is transaction fees paid by insurance companies.

In the last month the stock hit 13 new highs and is up 13.89% I'm hoping in anticipation of good earnings results.  The recent price appreciation has earned the stock a 72% Barchart technical buy signal.  It trades around 8.65 with a 50 day moving average of 7.45 and has a Relative Strength Index of 7.45.

This is a relatively unknown stock with only 4 opinion votes on Motley Fool but all are positive.

A highly speculative position so monitor closely.



Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.



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