Two Stocks Trading Well Below Targets By Vincent Farrell Jr. About this article: Allstate, last sale $29, will probably be weak at least on the opening, since earnings of 99 cents a share fell slightly short of estimates. We feel that the Street got ahead of itself with expectations, as most property and casualty stocks reported strong earnings due to the absence of major storms. Allstate derives about two-thirds of its premium volume from auto insurance, so it is subject to different variables from those of the larger, more diverse insurers. Newly issued policies were up 12%, and the renewal ratio improved to 89.1%. Policies in force did decline slightly to by 1.3%, as there was a smaller pool of policies in force that were eligible to renew. My partner at Soleil, Harry Fong, who follows the group, would not be deterred from buying the stock. At a 15% discount to book and at only 6.7 times our estimate... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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