AGO's valuation (.6 PEG) seems low when I consider that the economy (and housing) is heading toward a more solid footing. AGO's earnings growth from operations appears unavoidable. The market does not appear to be applying all the metrics into the price of the stock. Is the market being irrational or is it me?
I think that the analysts have not put enough effort into the FSA acquisition. The're just waiting for q3 and q4 results. I also think credit derivative losses will not be as high as everyone thinks or Fitch would have given them more than a "one notch" downgrade. We'll see.