Let's get some real interest on this board!!!! We need knowledgable people who know this company and this industry to discuss the "real" issues regarding RDN. For example, it appears the former Amerin management group has taken control of this company. That's too bad because that group doesn't have a clue, expecially Mr. Kasmar, who has never been successful at anything he's done except to be in the right place at the right time. He's a micro-manager who is creating tension and conflict within the organization.
Let's also talk about RDNs underwriting philosophy and what that will mean to investors when we have a downturn in the real estate sector. RDN has a reputation of being somewhat "fast and loose" with their underwriting in order to creat market share which creates income. However, that is short-term oriented. What's in store three years from now?
I personally have no investment in RDN, but do in both MTG and PMA. This sector is very undervalued for the amount of money these guys make.
It's interesting to hear about Mr. Kasmar like that because I have heard nothing about him. Also, aren't most of the top management from CMAC like Frank and the sales and finance guys? I never thought either of these companies was wonderful and I thought less so about Amerin who started off with a mission to be the LPMI/discount insurer only to junk the concept when market share stalled at about 5%.
The one thing I can say is that Amerin had good timing in the sale, just when their share had been boosted to 8% (this will be temporary, IMHO) and the combined share of the two will settle around 15-16%. You can already see the other MIs picking up share at the expense of RDN.
If I was a shareholder, I would be worried about the credit quality of both the former CMAC and Amerin as they were both known to have more marginal credit quality than anyone else, and the combination of the two quite possibly will produce larger than industry normal losses when the next downturn occurs, some say as soon as Q2/Q3 2000. (Sorry Banklover, I just realized you wrote almost the same thing, but I think other RDN shareholders have to understand this)
Any comments about any of the MIs would be appreciated.