AAME - Atlantic American Corporation Trades At Less Than 9x EPS

• Insurance company Atlantic American Corp. appears to be a buy because of its balance sheet.
• The total amount of assets was equal to $405 million, with total liabilities of $260 million. Note that the market capitalization is equal to $104 million.
• With net income of $12 million, the company appears to be trading at 8x its net income.
• I reviewed the PE ratio in the insurance industry. Most competitors trade at 8x-18x, which means that Atlantic American Corp. is undervalued as compared to its peers.
• If insiders stop selling shares, the investment community would trust the company's financial health a bit more.

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