MBIA Inc. Message Board
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MBI may be worth "$30 - $40 a share" in run-off: Barron's
"Balance that against MBIA's assumption, even in run-off, that the company could continue to generate annual revenues of $1.3 billion to $1.4 billion, just from growing net investment income from reserves and other assets; installment premiums from existing customers; investment-management revenues from various funds it runs for municipalities and other customers, and already-collected insurance premiums that get booked into revenues as coverage periods expire.
As a result, some observers claim that, conservatively, the present value of MBIA's liquidation value in run-off is likely to be $30 to $40 a share. If true, it would appear that MBIA has long way to go on the upside, dead or alive."
- today's Barron's-
If the real estate market : US economy stabilize
deffinitely 30-4ç using the current risk premium
+ unknowns about real estate and the econony...
Warburg Pincus(judging from their write down) estimate NPV 15-20 bucks...Repeat do not panick and sell on the lows IMHO- 1 Reply to upstream211
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Washington, USA, 2012. Obama's 2010 policy of giving a green card to any potential US immigrant who has the means and willingness to purchase a home stemmed the downtrend of real estate, the stock market and the US economy in general. Fortunes have been made in the last 2 years in real estate and financial services (especially if you bought the monolines at or near the bottom)........???
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I lost my respect for Barron's after that article.
- 2 Replies to nybankstocks
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Barron's never deserved respect. The only thing of value is the up and down wall street column and that is purely for entertainment value.
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Why?..
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Are u sure this is today's articel?
i read this info in january 2008?- 3 Replies to ak99_999
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You might be thinking about Ambac - those same numbskulls valued Ambac at, I think, $23/share a while ago. Apparantly the market disagrees with both analyses.
You'd think they'd be a little circumspect, but that doesn't sell newspapers.
Maybe they'll be proven correct in the long run, but I doubt it. -
I read it this weekend in the edition dated today.
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Trading at $49 due in 2022 at 6.75% Coupon
That is where you can lock in a nice yield
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"As a result, some observers claim that, conservatively, the present value of MBIA's liquidation value in run-off is likely to be $30 to $40 a share. If true, it would appear that MBIA has long way to go on the upside, dead or alive."
I hear that could be very conservative and there may be some VC and hedge funds looking at putting a deal together to get the servicing and run-off revenues which would be a huge return in the right hands. It would be a "no-brainer" for Berkshire Hathaway. Just buy the companyn for, say, $10 or $12 a share and liquidate it for its assets, insurance in place and run-off. They don't need to write any new business.- 1 Reply to jlh3ny
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"I hear that could be very conservative and there may be some VC and hedge funds looking at putting a deal together to get the servicing and run-off revenues which would be a huge return in the right hands. It would be a "no-brainer" for Berkshire Hathaway. Just buy the companyn for, say, $10 or $12 a share and liquidate it for its assets, insurance in place and run-off. They don't need to write any new business."
Right now the shorts "own" it, but if a deal is put together like you mention it won't take long to see it up a ton. They won't like getting stung is a "safe short." The mood on this would change overnight if there are people working to get the "$30n- $40" asset base.
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Just bot in for the first time. It's going to be hard to find returns equal to what this company is worth - JUST IN LIQUIDATION. How do the shorts do this? They must have a death wish.
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Just looked at Barrons - it's in there. Good find. What are people thinking? Looks like we have we may have a 7 - 8 bagger here if we can keep the faith.
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