lucky lenny

Will the U.S. Mortgage Market Keep PMI Group Down?

Mr. Lee,

- PMI's in better shape than most people realize. At the current time, despite the worst of times, PMI is indeed cash flow positive. Per the press release, paid claims w/ at most be $975 bill for 2008. Per 1Q08 earnings release, annual revenues in 2008 will be approx $1.3 bill. Even throwing in some overhead, PMI is cash flow postive. Revenues come from very reliable sources; such as grade A bonds & in-force premiums. PMI closed at $4.27; just a fraction of its $20 or so book value.

PMI Group Inc. Q2 2008 Earnings Call Transcript

after reading the entire transcript, I continue to believe that PMI w/ eventually get back to extreme profitability