Q: What else?

A: First Acceptance [FAC] is a Nashville-based nonstandard auto insurer. That means they provide insurance to people who don't qualify for standard auto insurance, people who have credit problems or things of that nature. And when they hear the word nonstandard, a lot of people run in the other direction. But the company provides a useful service, because people need auto insurance. The soft economy has hurt their customer base, because if you get laid off from your job, chances are you will drive less and may let your insurance lapse. That's hurt the stock recently. However, the remaining customers that still have jobs tend to be better risks. So while the premiums have come down a bit, so have the claim costs. They are reducing their expenses and they have put rate increases through in many of their states. The insiders own a big chunk of stock and they've been buying it. It is still trading at a big discount to book and ultimately the stock, which is around 3 right now, could make 40 or 50 cents a share.

First acceptance