My cost basis is $7.31 and I feel pretty good about that long term. I don't believe the company is going under so for me now it is just a matter of being stuck here for a while. As soon as the mortgage climate starts to clear, interest will come back into these stocks, and this one, I might add, is one of the quality ones compared to some others. In fact, there may even be some consolidation down the road.
Yahoo estimates are ancient history for MI companies and many other companies, too. Nobody with brains expected a profit of $0.7 per share. I think most people expected losses, I bet many people expected worse losses. This is a solid company with $38.30 book value and is not going to bite dust. The stock will surge 20-50 % today.
Some positive new for the sector and FED rate cut could take TGIC to $20. This is a gift at these levels. Some newbies do not understand that loss is not equivalent to stock losing value. Now actually stock has lost 80 % of value in 12 months while the stockholders' equity has been assentially flat. This is incredible, goes well beyond my comprehension even if we factor in the coming losses. This is priced for bankruptcy, but will not go bankrupt.
Dont forget they are increasing premiums which in turn will increase revenues ..... Most insurance companies are cash cows and it would take an extremely long disaster for them to go bankrupt. This stock is indeed priced for bankruptcy and this will NOT happen.