Trading at what about 30% below book - come on this is silly. Ever since the March correction and the MTG dip, it has not regain momentum and is just ridiculously cheap. Time for value buyers to step in and get this thing going again!
Joel the 52WL was at $5.26 which is what I was keying off of, and the end of today's consolidation needed to break out which it didn't. It's just a few cents off so a good day Monday could pull us up but not going up today hurt.
So now it'll be a question of how long we sit - only consolation is that MTG got spanked worse than RDN today for a change!
RDN has always lagged MTG - when MTG goes up, RDN will too but afterwards. The only thing I see is technical trading - today is looking like a strong double bottom consolidation which should then lead to a nice run up...value buyers giving support by coming in at the 52 week low retest to run it back up to top of the trendline...time will tell but I would look for over $6.50-$7.00 so it's back in the moving averages when we actually get a few good days in the market!
based on my modeling book will eventually bottom out at 0, or maybe a bit lower, remember that book is based on reserves where rdn is assuming 1/3 of their 12 month+ missed payments will magically cure, that is just not going to happen.