Morningstar, a global investment research firm, finds the 1Q earnings for title insurance company LandAmerica to be a source of concern. The earnings were below expectations, Morningstar reports, and it has reduced its fair value estimate of LandAmerica.

Notes the research firm: "Unlike its primary competitors that have other businesses to fall back on, such as First American and Fidelity National -- and even smaller competitors Old Republic and Stewart Information Services -- LandAmerica relies solely on title insurance and related services. The most recent quarterly results show how dangerous that strategy can be. A 30% year-over-year decline in quarterly premium has a much more devastating impact on LandAmerica than it has on the others. As a consequence the company is bumping up against lender debt covenants that could impact the cost of financing."

On the positive side: "Long term, we think LandAmerica will benefit from the cost reductions recently taken as each premium dollar has less expense attached to it." Read more.