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Radian Group Inc. Message Board

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  • sleestack76 sleestack76 May 13, 2012 8:11 PM Flag

    Keeping Powder Dry

    Tommie, I will also add that I also own a bunch of GNW and AIG. I have been buying RDN sporadically with trading profits for the past year and half. Did not sell any yet and dont plan to unless something Material happens to the operations. They are in the right place at the right time.

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    • Radian is better reserved than some other mortgage insurers. According to SEC 10-Q for the quarter ending March 31, 2012 page 7, Radian had $3.311 billion in "reserve for loan losses and lae" at the end of 2011. At the end of Q1 2012, they had $3.316 billion a slight increase.

      As defaults declined in Q1 2012 from 2011 yearend, Radian didn't take funds from loss reserve but, increased it slightly. The average reserve per loan increased from $26,007 to $27,833.
      (see SEC 10-Q, page 81)

      MGIC has close to $25K reserved for each loss as of March 31, 2012.

      In addition, Radian's loan loss provision fell by 60% from $427 million to $266 million. They could have slashed their projected loan loss provison by simular percentage/amount but, they took $200 million off their projection for the entire year; lowering the projection from $1.3 billion to $1.1 billion.

      Slees, you are right about not falling in love with a stock. However, keep an on it because, it will move up silently and when the big fish want to sell it, they might pump it. Things are manytimes not what they seem to be in the stock market and you know that.

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