Primus Guaranty, Ltd. (NYSE:PRS)

long term.

second curve

EPS

THIS STOCK IS MAKING BILLIONS WHILE ITS CAPS IS ONLY IN THE MILLIONS

good eps

Just will

Another correction play.

Potential risk of going straight to zero on this one. With 30-1 leverage, it won't take many hits to put them under. Fortunately they're in mostly single company debt so, in theory they should have an easier time understanding what they are insuring. Eventually I expect that they'll be regulated out of business but could be a big profit maker in the short term if they don't go under.

PRS got whipped by an erroneous link to LEH. The stock should return to the $4 range. Remember, PRS made a lot of money last quarter, bolting past expectations. Now, with the Govt. making very aggressive anti-capitalist policies to contain the toxic subpime leaks, PRS is set to make a nice run.

Will bounce back at some point.

Financial sector recovery.

Well, it scares the hell out of me, but I'm on board. According to what I can discern from the collective CAPS wisdom, as well as additional Internet research, it seems that this is a great company that is tremendously undervalued. I've jumped in at several points - around $12, $6, and now my latest position addition at $2.90. I'm definitely in for the long term here.

Value

Detailed stock analysis:
yodastocks.com

Primus analysis: http://seekingalpha.com/article/65422-thestreet-com-on-primus-guaranty-wacky-and-uninformed

It's about time that PRS will turn around and start gaining eventually performing as well or better than SPY

My # 1 real life holding, as this has gotten hammered for no reason. It has almost no exposure to sub prime mess but it has gone down with them.

Another round of Insider Trading last week (90,000 shares). Plus, Standard and Poor affirmed its "AAA" status friday, noting that PFP has only 80 million in mortgage backed securities which is makes up .33% of their portfolio.

trading at 4 is less than 50% of Book (which is cash and for-sale securities). Also it is currently selling bunches of contract at super attractive terms.

All losses stems from the fact that the Co. needs to mark to market the contracts even is they are going to be held to maturity. Just another optical illusion of GAAP

Primus is being whacked by financial know nothings because they have huge GAAP losses. These occurred because they have to mark to market their credit default swaps. Since they intend to keep these CDSs to maturity, they will eventually get all the "mark down" back. Since they are not a bank, they do not need to raise capital to meet banking regulators requirements. So they are being punished unfairly. their stock is down about 75% and when they reprice their CDS stock to market (when the market reequilibrates), they will show ridiculously large GAAP profits that will be as bogus as their current "losses".
These stubs are a steal at $4!!