Kronos Worldwide (KRO) reported second-quarter EPS last night of $0.22 vs. $0.16. Results were $0.05 below what I expected. While sales increased 24% in the quarter, reflecting higher volumes and higher prices for titanium dioxide, this was just short of expectations of 25%. In addition, higher-than-anticipated production costs also limited results

After trying to hang in earlier in the trading session, the share are now down more than 3%. While the earnings are disappointing, I believe the stock is now very cheap and earnings will remain in an upward trajectory. My new buy under price is $13, my target is now $16.

Safety Insurance (SAFT) had a strong second quarter, earning $1.85 per share, just less than the $1.95 earned last year when the company was helped significantly by the economic shutdown in Massachusetts which led to less frequent automobile accidents.  Earned premiums increased 6.6% in the quarter, aided by the absence of a state-mandated refund to policy holders due to the pandemic. This helped offset the 22% increase in claims as more drivers took the roads in the absence of the shutdown.

I believe this quarter shows the company can sustain annual EPS of $6.50 to $7.00 in a post-lockdown world. There is good value in SAFT with the stock trading at 12X the low end of this estimate range and approximately 1.3X book value. Buy SAFT under $80. My target is $90. The 4.2% dividend yield will add to total returns.