The Street article tries to pump RDN but ends-up boosting GNW. Funny.
Other analysts, however, argue investors would be wise to turn their attention elsewhere in the sector.
"Many investors are very bulled up on the U.S. mortgage insurance space right now, especially given the opportunity created by the U.S. government's retreat from the space," wrote BTIG analyst Mark Palmer in an email to TheStreet last week.
He notes "the improvement in Radian's financial picture and its relatively low risk-to-capital figure," but worries about "the company's high frequency of claim denials."
He argues Genworth's mortgage insurance unit "is in better shape than its peers," adding that it "is very well-positioned to return to profitability at some point in 2013 and to claim a meaningful portion of the market share that the government is ceding." Palmer says Genworth's mortgage insurance business "should provide a boost" to the company's shares.
30 million shares + 200M in convertible bonds, so the equivalent fully diluted count is in the neighborhood of 60M shares, which is a big percentage of its float, but they may get a good price, given how far RDN trades above its book value.
This will give them the holding company capital to make the contribution to the MI sub that they referenced in their con call. It certainly makes me more interested to actually study the RDN financials in more detail (the denials and lower reserves per claim turned me away before, but they now have their reserves per claim up at a more reasonable level).