MGIC Investment Corp. (NYSE:MTG)
The Company through its wholly owned subsidiary Mortgage Guaranty Insurance Corporation provides private mortgage insurance in the United States to the home mortgage lending industry.
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way undervalue
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Getting ridiculous based on valuations. Downside is more than priced in.
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down $5 to $26
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Great value play for those who can wait.
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Trading at half book. The mortgage metldown is not going to wipe out half of this company's book value.
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Mortgage Insurer that picks up the bill when someone defaults on a loan. In the next year, many ARM mortgages will reset to a higher rate leading to missed payments and additional foreclosures.
Because of these foreclosures, I believe companies like this will take a severe hit to the bottom line.
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They released their Q1 earnings at 10:30 PM.
They missed by 60 cents.
They saw a 70% increase in insurance losses when housing didn't begin to tank until late in the Q.
They have yet to write down or address their C-Bass venture in any meaningful way.
Why would a shareholder want to own stock in a company that releases earnings when shareholders aren't paying attention, has mounting losses, and has subprime exposure they won't address or quantify?
This thing should get a 50% or more haircut over the next year.
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mortgage companies are in trouble, despite huge drop already I see more pain
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hurt by housing woes
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This Milwaukee-based outfit is the largest mortgage insurer in the U.S., with more than $165 billion in insured loans. The firm, with $1.5 billion in annual sales, insures lenders against higher default rates on homes purchased with less than a 20 percent down payment. The end of the housing boom has eaten into MGIC's sales and earnings growth, and the company may take a hit as more homeowners default. But as long as unemployment doesn't spike, Jesko says mortgage defaults should remain under control. And once the real estate market stabilizes, premium income will start growing again. The stock sells for a little more than book value. Reinhart figures shares could climb 56 percent to their $95 per share PMV.
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