If they could raise $1.5 billion to fund operations, they wouldn't have to be held up waiting for a settlement with BofA or any of the other defendants in ongoing cases in court..
Eventually, they will settle with BofA. Then they could expand their share buyback program.
If MGIC can raise a billion and their not even profitable, MBIA could raise $2 billion.
Sentiment: Strong Buy
Tommie: Do you really think that Warburg, having gone through all the hell they've experienced over the past five years, would seriously consider a capital raise at this point? They are probably still $17 a share underwater, maybe more, so that is just not going to happen.
Remember there are only 193 million shares, presently valued at $2.5 billion, so an underwriting of a convertible issue along with common stock even at the $1.5 billion level would be highly unlikely. I could think of a number of other alternatives that would be far more favorable to current shareholders than a new infusion of capital. What is working now for RDN and MTIG is not the best solution here.
Good idea but that would require too big of a discount. Once we get a few upgrades due to Article 78 the price of stock could hang around 12 for awhile. A 2 or 3 dollar bump on settlement this year would get the stock in the 14 or 15 range this year. That would be a great spot to grow from for the next couple years.
The upgrades are bought by the Marketmakers. MBI will be $20 soon after the offerings.
MBIA is a moneymaking machine, the Muni-bond business is extremely profitable for them and once they start generating more revenues, it will be even more profitable.
tommie, as I was expecting in MTG like you it happen what you thought. Now, I have some position in mbia do you like to buy more now or wait until they have offering? I am thinking to buy some tomorrow. Any insight?
I can't believe I'm even replying to you as you are the biggest idiot on here, but let me take a whack at this.
1. Any loans to MBIA would fall under the scrutiny of the NY Insurance regulators. As it is, MBIA is nearly insolvent per Jay Brown's comments that without a settlement, MBIA would be put into receivership. They aren't about to allow MBIA to take on more debt. that much was made clear when they blocked the interest payment on the bonds recently.
2. Any straight up investment in MBIA by your suggested financiers would give them positions of equity in return and dilute shareholder value. Duh, a secondary offering of equity for $1.5 billion would render your common shares worth about 0.99 cents
How do you suppose that these financiers provide MBIA with that $1.5 billion? I seriously think you post these idiotic comments just to get a reaction. Any serious investor would consider these comments of yours are cartoon material. Think Dilbert.