Old Republic International Corporation (ORI) has moved within a couple of percentage points of my $27 target, and I am recommending sale of the stock. ORI has proved excellent returns for us, including its regular quarterly, and $1 a share dividend next year.

However, I believe now is the time to take profits, as the stock is fully valued, and I see no upside to earnings estimates with the cost of insurance claims rising and the company’s title insurance business likely to stay depressed for a while. Sell ORI, I will have a replacement prior to our next issue in 2 weeks.

Sell ORI stock, we will replace it within 2 weeks.