“Is Genworth Financial a Buy?”

Is Genworth Financial a Buy?,” by Mathew Frankel, Motley Fool

Genworth Financial (NYSE:GNW), a leader in long-term care (LTC) insurance and mortgage insurance, is trading for about $4.50 per share. This is rather cheap, considering there’s a pending acquisition of the company at a price of $5.43 that management is hoping will close within the next few months. However, there’s a big caveat here. The acquisition still has quite a few regulatory hurdles to cross before it’s a done deal. Let’s look at why there is such a disparity between the current stock price and the acquisition price, and see whether Genworth is a quick potential payday for investors or a trap to be avoided.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

I reckon some LTC Clippings readers either own Genworth stock or may be thinking about buying some. So, here’s Motley Fool’s take on the issue. Happy New Year!