Proof that self-directed (retail) investors like engagement

Explain to me again how all retail investors are opportunistic day-traders, annoying short-sellers and “Mom & Pop” blue hairs?

From where I sit in the back office of… I see VERY ENGAGED and educated individual investors asking questions at par with institutional investors.

Below is an actual transcript of the questions asked. I only scrubbed names. 


QUESTION: can you explain the drop off of earnings growth; what is your longer term growth rate projection.
QUESTION: Any detail on your exposure to EU debt?
QUESTION: Can you please review XYZs’ historical dividend policy and the future plans / changes?
QUESTION: As baby boomers age, will that negatively affect financial performance?

Click the image to see the chatting in the Investor Lounge. Cowboy hats are optional.

QUESTION: With aging population in Japan and more pay outs as they utilize their insurance how will that affect XYZ’s future eps growth. How can you be sure that the company’s investments and current premiums will keep up with future costs?
QUESTION: XYZ has historically raised its dividends yearly. Haven’t yet this year. Would continued XYZ share price weakness impact management’s decision to add to the dividends when share repurchases might be more beneficial than a dividends increase?
QUESTION: Can you speak to the ongoing impact of the Japanese tsunimi on XYZ Japan P&L
QUESTION: Yesterday my club voted to sell all of our XYZ due to what we believed to be a lot of exposure to European debt by XYZ (30% of assets) and the possibility of that debt to be deeply discounted. Were we right in this assumption?
QUESTION: Can you please speak to XYZ’s dividend history – and frequency of dividend changes up or down)
QUESTION: Can you speak to current valuation of XYZ – trading at a two year low. Sell side has price targets at 2X current price.
QUESTION: Can you talk about interest rate risk in the investment portfolio. For example how would a 1 percent increase in rates affect the portfolio? Also has XYZ bought any company stock in the past quarter? If so how many shares?
QUESTION: Are there plans to do business in counties other than US and Japan? Thank you
QUESTION: How has the MARKETING CAMPAIGN marketing campaign increase sales?
QUESTION: What is the next significant catalyst for XYZ?
QUESTION: On a lighter note. “The Holiday marketing campaign” is becoming a familiar presence at Christmas. I am just curious on how much overall retail revenue the marketing campaign brings in annually?
QUESTION: What is XYZ’s percentage goal for PIIGs investments?
QUESTION: can you explain the drop off of earnings growth in 2012; what is your longer term growth rate projection.
QUESTION: Are you able to discuss the expected change in number of policies due to Fukishima (sp). Simply put are you modeling for an increase in policy growth and subsequently long-term losses for your cancer insurance products (in Japan
QUESTION: I have a question about XYZ Japan’s past performance. Prior to 2007 XYZ Japan had net underwriting losses. 2007 was essentially break-even and then in 2008 XYZ Japan began to show underwriting profitability. Q: What changed? Benefit/claim ratios dropped. But why? The 10-K cites favorable claim trends and new more profitable products (Child endowment WAYS DAYS) that drove the claim ratio drop. What’s driving the favorable claims trend? Is it shortened in-patient hospitalization stays? Or is it a change in underwriting policy/pricing that XYZ Japan has driven?
QUESTION: Your sales agents and brokers are commish only and not salaried correct?
QUESTION: I heard that Japan only covers their people with health care til they are 70. Is this true? Do Japanese people buy XYZ to cover this?
QUESTION: XYZ’s general account yield will decline next year as the company de-risks the portfolio. What sort of fixed income credits is XYZ looking to invest in going forward
QUESTION: (YOUR COMPETITOR) now has a sizable presence in Japan after buying ABC’s DEF unit and plans to aggressively compete in the Japanese market. It appears DEF’s franchise was damaged somewhat due to the problems connected with ABC. This will change under the (YOUR COMPETITOR) umbrella. Do you view (YOUR COMPETITOR)’s entrance in the Japan market a major threat to your Japan business? How do you plan to compete against them?
QUESTION: The product mix is changing at XYZ Japan. It seems some of the faster growing products like the child endowment product is less profitable. What are the catalysts to improve your benefit ratio in Japan?
QUESTION: The Japan incident does not significantly affect XYZ’s business or financials is that correct?
QUESTION: What do you think the next catalyst will be for XYZ (e.g. acquisition new market new product or service etc.)?
QUESTION: Does XYZ plan to expand to any other Asian country such as China?
QUESTION: What has been the dividend history for XYZ – how many quarters of payments
QUESTION: What is your geographic split on revenues? Does XYZ operate in any other countries beyond US and Japan?

Have a great day. Shake it Davy.

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