Buy - Price 17 on Sept. 25
by Singular Research

Life Partners Holdings engages in the secondary market for life insurance known as life settlements, which involves the purchase of previously issued life-insurance policies at a discount to their face amount. LPHI acts as an agent for buyers and engages in the purchase of life settlements for its own investment purposes. LPHI issued preliminary 2Q10 revenue of $29.1 million, in line with our estimate of $29 million. Operating income of $11.1 million was below our estimate of $11.7 million. Detailed results are expected on Oct. 10, but we suspect higher costs may relate in part to the August launch of LPHI's ?166 new, structured life-settlement product for broker/dealers. 2Q EPS of 51 cents missed our estimate of 53 cents, but was in line with the only other published estimate. CEO Brian Pardo said the industry and LPHI continue to see substantial growth....Despite 17% 1H10 earnings-per-share growth, LPHI is trading at only 8.3 times fiscal-year 2010E-EPS. Our price target of 35 is 15 times FY 2010E-EPS. LPHI's 25 cent quarterly dividend also provides a generous 5.3%. Market cap: $280 million.

steady

has excellent growth

Only viatical trading

16%

Financial services company Life Partners Holdings Inc. said last week its board authorized the buyback of up to one million shares of its own stock.

The stock trades for 8.5x cash flow.

Boomers getting older and will want money instead of letting their kids get the money from the policies. It's the me generation!

high margin high growth speculative play

short squeeze in the making

growth