Ticker Tape Digest

    FNF, based in Jacksonville, Fla.,  is a leading provider of title insurance, specialty insurance and claims management services. Annual revenues: $4.6 billion. FNF is a big earnings turnaround play. Today, the stock edges higher and remains in position to breakout from an 8-week, cup-and-handle base. The firm could benefit from an improvement in the housing market.

  So far today, FNF is up slightly. Volume is running at 2.5 million shares. That is light. The stock's average daily volume is 4.3 million shares.

  FNF rose sharply in the morning, bucking the stock market's decline. The stock then trended sideways the rest of the day, weakening a bit late in the day.

  TTD's clip of the tape shows the big blocks One can see a zig-zag pattern in the price movement of the blocks. However, overall, the price of the blocks rose from $18.87 to a peak of $19.10 before dipping a bit.

  Overall, we see the stock showing good institutional buying interest.

   FNF is one of the nation's largest title insurance companies through its title insurance underwriters.

  FNF also provides flood insurance, personal lines insurance and home warranty insurance through it specialty insurance business. The company is also a provider of outsourced claims management services to large corporate and public sector entities through its minority-owned subsidiary, Sedgwick CMS.

  TTD's performance chart shows FNF's stock appreciating 40% the past nine months. It has easily outperformed the S&P 500 index which is down 35% during the same time.

 TTD's long-term chart of FNF shows the stock hitting a bottom around 6 late last year. Since then the stock has tripled and is now in position to breakout over key long-term resistance at 20.50.   

  TTD's daily chart shows the recent surge in FNF from 6 to a peak near 20 in February. Then it pulled back and over the past few weeks has formed a cup-and-handle base. The tock did attempt a breakout four sessions ago, but did not clear the base.

  FNF's technicals are good. The TTD momentum indicator (top of chart) is still bullish. The accumulation - distribution line (bottom of chart) is in an overall up trend, although it has flattened out over the past few weeks.

  This year, analysts predict FNF's earnings will climb to $1.52 a share from a loss of 78 cents a share a year ago. The stock sells with a price-earnings ratio of 12 based on this year's projected net. TTD sees that as reasonable. The Street has been boosting its earnings estimates the past few weeks.

  Next year, analysts predict a 5% gain in FNF's net to $1.60 a share from the anticipated $1.52 this year. The projections could move up.

  For the upcoming first quarter, the Street is looking for net to jump 100% to 20 cents a share from 10 cents a year ago. The highest estimate is at 24 cents a share.

The company expects to benefit from a recent acquisition and an improvement from its reduction in expenses.

  The second quarter should show a big acceleration in quarterly profits with net soaring 1,508%. The Street looks for net of 48 cents a share, up from 3 cents a year ago.

  Strategy Opinion: FNF is a  stock that will show a big improvement in earnings. TTD suggests a stop buy at 20.50 to catch the breakout. A protective stop can be placed near 19.50 after a breakout. TTD is targeting FNF for a move to 26 after a breakout. We rate the stock a very good intermediate-term play provided earnings remain on course.

  Sponsorship: Very Good. The largest fund holder is Artisan Mid Cap Value Fund, 5-star rated, with a 2.8% stake. A key buyer recently was 4-star rated Brandywine Fund which picked up 629,000 shares. FNF has 215 million shares outstanding. Funds hold 54 million shares.

  Insider Activity: Slightly Bearish. Some heavy insider buying using stock options. Then the buyers turned around and sold. Two analysts follow the stock and both have a buy.   

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