Shares of MGIC Investment Corp (NYSE:MTG) have soared in the past week after reporting an extremely strong quarter. With each quarter, the pain of the financial crisis dissipates further, showing the true potential of this private mortgage insurer. While shares rallied 15% on the strong earnings, I believe there is further upside in shares.
(click to enlarge)
Obviously, the housing crash absolutely pummeled mortgage insurers who were totally unprepared for so many of their policies to default with virtually no recoverable value. The company racked up billions in losses, jeopardizing its very existence and left shareholders with losses in excess of 90%.
Fortunately, MGIC made the painful decision to raise equity and expensive debt to maneuver through its...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|