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Aflac Incorporated (AFL) is involved in the marketing and sale of supplemental health and life insurance plans in the United States and Japan. It sells cancer plans, care plans, general medical indemnity plans, medical/sickness riders, living benefit life plans, ordinary life insurance plans, and annuities in Japan.

The company also sells cancer plans and various types of health insurance, including accident/disability, fixed-benefit dental, sickness and hospital indemnity, vision care, hospital intensive care, long-term care, ordinary life, and short-term disability plans in the United States. Aflac underwrites individually issued policies, and markets its policies through independent agents, as well as through independent corporate agencies, and individual agencies.

Some interesting facts about the company are that over 40 million people worldwide have chosen Aflac and the famous Aflac Duck is enshrined on Madison Avenue''s Walk of Fame as one of America’s Favorite Advertising Icons. The Aflac Duck has been featured on “The Tonight Show with Jay Leno” and “Saturday Night Live.” In addition, Aflac was founded by three brothers, who started the company in six small rented rooms in Columbus, Georgia.

Aflac’s stock is strong fundamentally with a great combination of super return on equity and extremely positive cash flow. The last earnings announcement revealed total revenues were $4.3 billion during the first quarter of 2008, compared with $3.8 billion in the first quarter of 2007. Net earnings were $474 million, or $.98 per diluted share, compared with $416 million, or $.84 per share, a year ago. Net earnings included realized investment losses of $4 million, or $.01 per diluted share, compared with $9 million of realized gains, or $.02 per diluted share a year ago.

Aflac’s stock has an average trading volume of 2,557,900 shares per day. The company has annual sales over $15.9 billion and in percentage terms has a sales growth rate of over 7 percent per year.

This stock is in a distinct Elliott Wave-4 buy formation, projecting gains into the $72 per share area over the next few months. The company does have a liquid options market that currently extend out to January of 2010, allowing the options strategist more than enough time to trade this opportunity.

Figure 1: Daily Elliott Wave-4 Buy Pattern for Aflac Incorporated
(Source: Profit Source)

Happy Trading.


Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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Listen to Jeff at www.ProfitStrategiesRadio.com

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