The math supporting this new target price of $8.00 per share follows:

1. 6/30/09 Quarterly adjusted earnings = 14 cents of EPS;
2. Four more quarters of the same = 56 cents EPS for the year;
3. Reasonable PE ratio = 15;
4. #3. times #2. = $8.40.

Test for reasonableness:

1. Fourth quarter combined expense ratio = 82.7%;
2. Annual Sales Level off @ $200,000,000;
3. Reciprocal of combined expense ratio = 17.3%;
4. Pre-tax earnings = $30 to $35 Million;
5. EPS (pre-tax) = 70 cents plus or minus;
6. PE of 15 = $10.50 per share price target.

It is hard to filter into the calcualtions there will be ZERO taxes into the foreseeable future. This used to be uniqie to FAC but now with corporate America having so many losses, it is common place. Not sure how this adds value other than the obvious of no real tax liability to pay for many years into the future. Make sense?