From a technical standpoint we are just about at a complete retracement to prior support and break-out levels give or take since it's been so long.
After that price range last time RDN went up to $18.00 in a worse economic condition and worse housing market than we have today.
They are in good shape, have plenty of reserves and additional capital available, defaults are declining - based on their last ER I can't see a reason not to hold and wait for another nice spike up in the future!
manchulo..i was actually looking at the charts today and noticed the 18 level we reached after having the mp drop the way it did...i absolutely agree with you...and today we were in much better shape that that time period...there is no reason we shouldn't go up...its just a matter of time...people are quick to assume that when we go down like this.."RDN IS DONE FOR"..."NEXT IS BANKRUPTCY"..always the same nonsense we hear from shorts...just a matter of time ..
Yah, I am well aware of housing data as my other "job" is a Florida Realtor! That is one of the reasons I am optimistic on housing and MI stocks going forward.
You have to remember the national averages in the reports include some large, poor areas that no one wants to buy or build in when they can now work into the better areas - the better areas are seeing a lot of improvement, with REO's being snapped up like crazy as well as reasonably priced non bank properties.
Spec building FORTUNATELy is still weak - we do NOT want to see a bunch of builders start construction on homes - we want existing inventory to be bought up, which it is.
Based on your logic then MTG should be at $4.00 right now so although this move in RDN is most likely technical, something is wonky and this move is way, way overdone. Whoever is driving it down will step away at some point and then we should have a whoosh up.
GS DID IT SO THEY CAN ISSUE SHARES!!!!!!!!!!same thing was done on BAC,JPM,FITB,.....................plan since March 09 was push market higher issue shares and dump it to public!!! why RDN trading at 18 at that time issue shares at 12$????