Portfolio Insurance - Low valuation signal with AFLAC

1. In October 2011, we sold AFLAC at a profit and stated: ‘We are taking a small profit on AFLAC because the Purple Chips models suggests that the valuation range will be lower and that there will be other opportunities to buy again under $40’. Since that time, AFLAC has grown earnings and continues to be one of the top 25 Purple Chips that trade on the US market.

2. AFLAC has a low Price/Earnings (PE) ratio of 6.2 and a PEG ratio of 0.59.

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4. LOW VALUATION IN AFLAC AT $41.00 (AFL-US, $ 39.82)

5. S&P rates AFLAC at 5 stars and has a target of $USD 53.

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