Philip Mause
Long-term horizon, deep value, dividend investing, research analyst

Municipal Mortgage & Equity: Big Upside For Limited Downside

Municipal Mortgage & Equity (MMAB) has had a checkered history trading in the mid-20's before experiencing near-death during the Panic of 2008 and descending into the Hades of penny stocks. MMAB has come through the Valley of Death and recovered; it closed Friday at $1.66. Although it has moved up sharply in the last year, it is still a bargain at this price.

MMAB is in the business of owning and managing portfolios of tax exempt and community development district bonds. Most of its bonds are secured by low income and affordable multifamily rental housing. I think of MMAB in comparison with a group of stocks which I have termed "non-agency mortgage REITs." I have written about this group here...

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