Microsoft Corporation Message Board

by ohmygoddard on BBweek article.

These claims of ownership toward Fannie and Freddie by our government are false. Their talk of abolishing these companies is in line with the rest of their progress -- it lacks substantial results, it's based on illogical assumptions, and it doesn't reflect what the people are calling for. You cannot take property in a solvent company when your mission was to repair the damage done to them by banks committing fraud. IF you think that you are going to get away with this, you better think again.

There is no way in hell that the government will take taxpayer's property, investments, and future without a fight. You bailed out your cronies at the banks, provided them with insider information, and then loaded Fannie Mae and Freddie Mac with your debt. Fannie Mae and Freddie Mac were performing better than any other real estate business at the time, and Paulson and company forced the hand. Read the legal documents. You didn't have the right to take the businesses, and you still don't have the right to take their money. You could have provided a loan like you did to AIG, but instead, you greedy slime in congress are attempting to overturn years of progress.

If Obama sides with these idiots in congress, then the future of housing is in danger. And my confidence in this country's ability to render justice is completely lost. I will continue to share this view until the day I die, unless something is done to restore the shareholders, the businesses, and release them from the corrupt government left by Bush et al.

Sentiment: Strong Buy

Thu Jun 13, 2013 12:39pm EDT
June 13 (Reuters) - Standard & Poor's Ratings Services said
on Thursday it raised the ratings on five MBIA Insurance
Corp-insured housing revenue bonds to B from CCC, citing the
upgrade of MBIA Insurance Corp on May 8.
"All of these issues receive partial support via guaranteed
investment contracts or investment agreements from MBIA
Insurance Corp.," said S&P credit analyst Renee Berson.
If the issuer decides to end, replace or guarantee the
existing agreements, and provide cash flows demonstrating the
ability to pay bond obligations without relying on interest
earnings from investment agreements, S&P will take appropriate
rating action, the rating agency said in a statement.
The following issuers ratings were raised to B:
-- Alameda Housing Authority, Calif.'s (Ginnie Mae
collateralized - Independence Plaza Apartments) series 1998A
multifamily housing revenue refunding bonds;
-- Nevada Housing Division's (Diamond Creek Apartments
project) series 1999A multi-unit housing revenue bonds;
-- Nevada Housing Division's (Diamond Creek Apartments
project) series 1999B multi-unit housing revenue bonds;
-- San Jose, Calif.'s (Federal Housing
Administration-insured mortgage loan - Sixth and Martha Family
Apartments - Phase II) series 2001C multifamily housing revenue
bonds; and
-- San Jose, Calif.'s (Village Parkway Senior Apartments)
series 2001D multifamily housing revenue bonds.

Sentiment: Strong Buy

Who are the buyers of these calls? We are seeing so much of activity in call options lately, but the PPS is not moving much?
IMO, we could suddenly see a pop in price by $2 on a single day, otherwise this high activity of call options doesn't make any sense.

Sentiment: Strong Buy

The bank last Friday announced a nationwide round of job cuts in its mortgage servicing unit that would eliminate roughly 1,800 jobs, according to a person familiar with the matter. The two regions hit hardest by the layoffs: Albion, N.Y., where an entire call center will be closed, and Tampa, Fla., otherwise a growth area for the bank.

JPMorgan in February said it would cut up to 17,000 jobs, with the bulk of these layoffs coming from the mortgage servicing unit, which deals with soliciting payments from delinquent borrowers.

An improving credit landscape means fewer loans are delinquent—and fewer people are needed to service these loans. It would seem credit is improving faster than expected: The layoffs in JPMorgan's mortgage unit—up to 15,000 by the end of 2014—are more than halfway done.

Sentiment: Strong Buy

On May 31, Berkowitz reduced his holdings in MBIA by 92.84%. Berkowitz sold a total of 29,175,720 shares of MBIA at an average price of $14.25 per share, representing a 5.07% impact to his portfolio. Since his sell the price per share of MBIA has dropped 4%. The guru still maintains 2.25 million shares of MBIA, dropping it to one of Berkowitz’s smaller holdings. The shares Berkowitz now owns represent just over 1% of MBIA’s shares outstanding.

Berkowitz bought into MBIA during the second quarter of 2010 at an average price of $7.66 per share. Since that buy, the price per share of the company has jumped 79.4%.

During the first quarter of 2013 Berkowitz decreased his holdings of MBIA by 26.05% by selling a massive total of 11,069,600 shares at an average price of $10.02 per share. Berkowitz ended the first quarter holding on to 31,425,820 shares of MBIA. Prior to his recent selling of MBIA stock, the company was one of the guru’s largest holdings.

Berkowitz’s reduction of MBIA came right as Fairholme took on a $500 million stake in Fannie Mae and Freddie Mac. Berkowitz reported to CNBC in regards to his new position:

The time to restructure Fannie and Freddie is upon us, sustaining our nation’s economic recovery requires it. On behalf of the hundreds of thousands of Fairholme shareholders who helped to rebuild American International Group, Bank of America, CIT Group, General Growth Properties, MBIA and others after the Great Recession – we stand ready to do our part.

Based on the Peter Lynch Valuation of MBIA, the company appears to be undervalued:

Sentiment: Strong Buy