Investors in MGIC Investment Corp (MTG) were no doubt cheered by the firm's recent second quarter earnings release; against consensus expectations for a loss of $0.13, MGIC managed to rake in a tidy profit of $0.04 per share. The result has been a sharp rise in the stock price from roughly $7.40 before earnings to around $8.30 today. Yet before investors jump on board the stock hoping for similar future results, it's worth remembering that this is still a very troubled company. While things are getting better, MTG is still far too risky to buy into right now. Instead investors should take a 'wait and watch' approach to the firm.
In the most recent quarter, MGIC...
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