Estimate an intrinsic value of $56. ROIC characteristics superior to most dominant specialty retailers. TTM ROIC of 23% compares with LOW at 15% and PETM at 15% or AN at 6%. Operating margins, though down from 15% levels two years ago, are still impressive at 13.9% Compare very favorably with LOW at 10.6%, PETM at 7.8% and AN at 4.2%. Share buybacks have been sporadic but $700 million net of share issue in last two years. There remains $700 million in authorization plus some $980 million in cash on the balance sheet.

Estimate an intrinsic value of $50. ROIC of 8% showing improvement versus last year's 6.2% but should reach 12-13% as Citigroup integration takes hold. EV/Assets under management is only about 1.2% and could easily be 2% as scale benefits develop. Comparable EBITDA margins to JNS at about 27% yet JNS valued at 3.2% of AUM. JNS experiencing portfolio manager defections whereas LM's losses are executive or administrative, of much less significance to customer base.

Estimate an intrinsic value of $475. Alleghany has a significant investment in BNI which accounts for half of its investment portfolio. It operates several insurance subsidiaries including Capital Transamerica, a specialty niche company whose book value growth prior to its purchase by Alleghany in 2001 exceeded that of Berkshire Hathaway. Alleghany also controls Darwin Professional Underwriters (55% held) and owns 33% of Homsesite Group, a national monoline home insurer. The company at one point also controlled World Minerals, the world's largest producer of diatomite and perlite, which it sold to Imerys in 2005. The company, always a focused investor, has developed a portfolio of interesting niche insurance companies.

Managed care stocks have anticipated adverse changes in reimbursement for a year and a half. Cigna has sold off today largely because of pension costs at AET that were disclosed in its Q3 conference call. CI uses a smoothed pension accounting method and will report tomorrow morning.

Moderate women's apparel is struggling for companies such as Dress Barn or Charming Shoppes. DBRN sells at EV of $532 million. This is just slightly above its 2001 recession valuation of $430 million. Back then, the firm operated 720 DBRN stores. Today, it operates 822 plus 638 Maurices stores. Back then, the company had a return on invested capital of about 11%. Today, it runs at about 19% At today's price, the company is selling at a decade low in price to cash flow, price/earnings and price/sales as well as price/book value. The company is selling at a ridiculous 2.8 times trailing EBITDA. The company has just instituted a $100 million buyback program. My estimate of intrinsic value is $19.