Sat, Sep 20, 2014, 4:15 PM EDT - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Assured Guaranty Ltd. Message Board

  • white_sox_curse white_sox_curse Sep 28, 2011 5:26 PM Flag

    Two questions

    1) Can AGO management complete all those 'significant concentration risk' issues in 60 days?

    2) They may have to insure $1 billion of new Jefferson Cnty debt. Will that create more capital reserve problems under S&P criteria?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • If you are serious than go to the AGO web site and listen to the KBW presentation. The CEO changed the late August presentation to address the S&P criteria. The bottom line is that S&P is very unrealistic with the new criteria.For example the marks they want AGO to take on GO muni's (where there has never been a default) are crazy. However AGO outlined several steps they are taking to address this new criteria. One step they will not pursue is a capital raise. They point out they feel that their intrinsic value(Adjusted book value) is $49.23 vs. market price of $11 is way too far away to make this a reasoable option. They also show what a hypothetical $1 billion hit would do to ABV. See chart on page 18 where ABV goes from $49.23 down to $45.16. Bear in mind that the Jefferson County has been reserved for in the above numbers. Will they resolve the S&P issues who knows. They are saying they are working to that end. If they do not they will most likely go to plan B and that would mean puting the company into runoff or taking the company private. In either case we as shareholders should see a much higher stock price.The insider's obviously believe there is plenty of value here since they bought $18 million worth of AGO stock a few weeks ago.

23.22-0.34(-1.44%)Sep 19 4:05 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.