MBIA, Inc. (NYSE:MBI)
The Company provides financial guarantee insurance and other forms of credit protection as well as investment management services to public finance and structured finance issuers and investors and capital market participants on a global basis.
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This company has assets and people and infrastructure that are attractive to outside pools of capital. If they can attract one investor with $1 billion, they can do it again if necessary.
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Cramer says going under???
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oversold. panic. book value high. (is it real?)
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*to be updated
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bad credit opportunities.
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Good company with great management and good fundamental.
Along with the current great stock price will eventually give a good return.
expected time 1 to 2 years.
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Low return on assets and negative quarterly revenue growth
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MBI's subprime problems are overhyped by some aggressive shorts aided and abetted by Barrons magazine. Strong buy at 59 or less
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All you need to know about M B I A INC (MBI) is here: http://www.designs.valueinvestorinsight.com/bonus/pdf/IraSohnFinal.pdf
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Significant exposure to subprime mortgages.MBIA has $24.7 billion of "high-risk" credit exposure, which includes direct subprime exposure and more indirect exposure through CDOs, Ackman's presentation said. The company's exposure to so-called mezzanine CDOs, with underlying collateral rated BBB or lower, was $5 billion at the end of 2006, which is 73.5% of its statutory capital, he added. (Info from Pershing Square Capital Mgmt Hedge Fund)
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Not enough equity to support the business.
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Powerful and well-organized corporate team.
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