James Hodgins Symbility Solutions SY-X TOP PICK Jul 25, 2013

(Market Call Minute.) Loves this. Almost made this a Top Pick for today’s program. Their market share is exploding in the P&C claims processing market. Season has been down for the last 6 months, but that is going to come back and normalize.

Software company for insurance companies. Chart shows it breaking down through the $0.40 level, leading to a quick downside. Chart shows some support at $0.30. If it breaks down through the $0.30, he would get out.

Has a product that ties together contractors and insurance companies. Helps the contractors do estimates. Recently fell from $0.40 down to $0.30 because a large US customer is moving their business to someone else. Thinks this is temporary. Very active in both the UK and the US. Would prefer to get it cheaper.

They had a better mouse trap in terms of better claims processing. Ran into trouble when their largest customer dropped them. They changed chief technology officer at the customer.

They were about to lose their largest customer, State Farm and he was stopped out of his holdings. Their software for claims processing on property-casualty is really nice. He is now in a “wait and see” mode.

(A Top Pick July 25/13. Down 37.23%.) Still likes the product, and thinks there is potential in the company, but they lost their biggest customer.

He sold at the end of last year when they lost their biggest customer. That customer has an agreement to the end of the year and following that the stock may drop to levels where one should get in.

On his watch list. They do technology solutions for property/casualty insurers. Lost their largest customer over a year ago, but since then have done a lot of smaller sales, mostly out of Europe. Recently acquired their European distributors so are effectively cutting out the middleman. That should help with margins. In all of the due diligence he has done, it indicates they have the best technology in their space.

Sells workflow software into the insurance space. They lost their biggest customer about 2 years ago, but is now starting to turn the corner. Insurance is a very stable business, even in a bear market, so he thinks this will continue to do well.

This makes software for insurance adjusters, who are still notating on paper what needs to be fixed. He used to own this and wants to buy it back. Very good management team. The chart is looking better and he thinks that business is turning around.