Player Avatar Futurenhldad (< 20) Submitted: 11/3/2010 3:05:08 PM : Outperform Start Price: $11.30 MBI Score: -86.55

Their earnings are tied to businesses and banks, both of which are doing pretty well on the earnings front, unlike PMI, MTG or RDN. If they continue to watch costs and keep earnings growing, this could be the short squeeze of the century. 13% or 20.08 million shares short(although declining over last several mnths). I also like the 2.62 BILLION in shareholder equity.

Member Avatar rsd57 (< 20) Submitted: 12/23/2011 9:09:17 AM
Recs: 0

MBI performance is all about the settlement and litigation. Investing in this stock is a bet on favorable outcomes. It appears from what is going on in Court and the intervention of the NYS Insurance Commission that MBI is gradually unwinding its riskier guarantees and is on the road to recovering some of its payouts from bad representations and warranties by residential mortgage underwriters. If this is correct the stock is probably an easy double. After that the company's challenge will be to relaunch its municipal bond guarantee business. That is probably a 2-3 year process, but if that is successfull you probably are in line to attain another double. It is well to remember that there is a significant risk in litigation going against a company. So the statements above about the stock doubling two times should be discounted by the significant risk that the company could face setbacks in litigation. I am positive on the company prevailing but one should factor in that risk. Disclosure - I am long MBI.

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