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MBIA Inc. (MBI)

NYSE - NYSE Delayed Price. Currency in USD
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7.43+0.45 (+6.45%)
At close: 4:00PM EST
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  • A
    Anonymous
    The stock finally shot up afterhours with the notarized filing confirming the $670,000,000 paymentfor January 25th Monday. Credit Suisse already wrote down the 670mm loss for their next annual report. Market was waiting for the date and it's this Monday
  • J
    Jeff
    What’s going on in after hours - finally a 608 million settlement Approved?
  • D
    Damon
    608 million $ agree to settle from CS. Nearly double current market cap!

    https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=2zLZr3uQGnQSJd6XhQGQjw==&system=prod
    Bullish
  • D
    Damon
    updated tonite, they won the amount of 603 million, payable by 26th. Details below

    https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=9ZFMTidmWdwF6g09nYZ_PLUS_nw==&system=prod
  • D
    David
    Stumbled upon this stock. (I use to sell t.f. bonds that were 'insured' by MBIA a long long time ago)... Can anyone tell me what's going on here? The company (the insurance of municipal bonds & reinsurance) has seemingly never recovered for them in the last 12 years.? is that correct.? Are they truly a "Free Comapany" or are they operating under conservatorship (like Fannie & freddie).?? - What are it's major stumbling blocks to 'doing well' and growing business.?? (is there THAT much competition within this space now?) Thanks In Advance.
  • D
    Damon
    Looks like 680$ million pay out here from CS, Would double the market cap Buying all I can here
    Bullish
  • J
    JOHNNY
    CEO bought 100,000 shares.
  • S
    Stardust
    why no PR yet this whis wonderful news ? We should be trading at 15$ already ....
  • J
    JOHNNY
    I am in it. Wondering if I should sell before the earnings release this pm.
  • J
    JOHNNY
    MBIA (NYSE:MBI): Q3 Non-GAAP EPS of -$0.34 beats by $0.14; GAAP EPS of -$1.11.
    Revenue of $71M (-58.7% Y/Y).
    Book value per share was $4.25 as of September 30, 2020 compared with $10.40 as of December 31, 2019
  • T
    THINK!
    @kevin Buying back the stock will reduce shorts ability to cover. You have not read about the NY Dept of insurance placing MBIA under supervision, have you? Why not, if there isn't a sufficient capital base to pay expected claims? No need to restore it's credit ratings at this point, because they lost their credit rating prior to buying back all that stock. Since they can't write new business anyway, they are free to seek higher return on their portfolio. You have little regard for MBI's chances of recovery for losses on PR's bonds. However, these claims will be paid over decades. The payments cannot be accelerated. I think MBIA and AGO, among others, will eventually prevail after all is said and done. What is being attempted by PR to circumvent the payment of bonds goes against both the US and the PR constitutions, and also against established contract law. The real question is how long it will take. If you are short when any positive developments occur, and the shares outstanding have been reduced by another 30 million shares, you are going to be squeezed, and squeezed hard. I do not believe PR will get to walk away from paying the bond debt, except by the margin agreed to in a settlement. There is absolutely no reason at this time for MBIA/National to chase after a better rating until the PR mess is behind them. The business of National/MBIA is now winning the best recovery possible from Puerto Rico. All else is irrelevant. FWIW, I hope they use the entire $250 million authorized before the next earnings, and announce another $250 million.
  • T
    THINK!
    I doubt this surge was due to share buyback by company. MBI has had months to accumulate shares at much lower prices than today. There were millions of shares bought at the ask in the last 5 minutes of a heavy trading day. I speculate that some relatively heavy short has opted to cover and move on to greener pastures. The stock has been trending upward, and I suspect it is because of some impending good news. Lots of potential good things could be announced which could really cause a surge (even bigger than todays'); such as a buyout by AGO, an announcement that the $250 million share buyback has been exhausted, leaving the 30 million shares short holders hung out to dry, favorable rulings by Judge Swain in coming months, a push by the O-Board to actually require the PR government to institute some fiscal discipline, reduce pensions, define essential services, or a combination of two or more of these. I would hate to be short MBI if shares outstanding drop by 30 million. It could get ugly.
  • W
    Walle
    How come this news doesn't have any impact on the MBIA shares and in fact the price went down on this Monday.
    April 30, 2018 07:36 PM Eastern Daylight Time

    NEW YORK --(BUSINESS WIRE)-- Zohar CDO 2003-1, Zohar CDO 2003-1 Corp., Zohar II 2005-1, Limited, Zohar II 2005-1 Corp., Zohar III, Limited , and Zohar III, Corp. (collectively, the “Zohar Funds”), Lynn Tilton , MBIA Insurance Corporation , a wholly owned subsidiary of MBIA Inc. (NYSE: MBI), and the Zohar III Controlling Class of Noteholders jointly announce today that the parties have mutually resolved the motions pending in federal Bankruptcy Court in the District of Delaware relating to the Zohar Funds, and have agreed to a deal that will include a stay of all pending litigation between the parties. This agreement is intended to facilitate the refinancing and monetization of assets of the Zohar Funds to the benefit of all stakeholders, and the parties have agreed to work in a mutually cooperative process in support of such refinancing and monetization.
    As part of the agreement, an Independent Director will be appointed to govern the Zohar Funds, along with a Chief Restructuring Officer, who together with Ms. Tilton as director and manager of each Portfolio Company , will jointly implement the refinancing and monetization process. During the process, Ms. Tilton will remain in her current roles at the Portfolio Companies, all litigation between the parties will be stayed for a minimum of 15 months, and the bankruptcy cases will proceed without the appointment of a Trustee.
    Ms. Tilton stated, “This agreement is a meaningful and important step towards allowing the Zohar Funds to monetize and refinance their assets in order to pay off all creditor claims in full. It is in the best interest of all stakeholders that we lay down our swords and stop the years of damaging litigation in order to maximize value for all of the Funds’ stakeholders.”
    Anthony McKiernan , Chairman of MBIA Insurance Corporation , stated that “MBIA is pleased that the parties have been able to come to a consensual agreement that will put in place a process to enable MBIA to recover on the significant amounts it has paid its policyholders.”

    https://www.businesswire.com/news/home/20180430006595/en/
    Zohar CDO 2003-1, Zohar CDO 2003-1 Corp., Zohar II 2005-1, Limited, Zohar II 2005-1 Corp., Zohar III, Limited, and Zohar III, Corp. (collectively, the
    Zohar CDO 2003-1, Zohar CDO 2003-1 Corp., Zohar II 2005-1, Limited, Zohar II 2005-1 Corp., Zohar III, Limited, and Zohar III, Corp. (collectively, the
    www.businesswire.com
  • W
    Walle
    Company bought back 20% of its outstanding stock last quarter.

    There's a $250 million buyback authorization pending vs. a market cap of $750 million. If fully executed, Adjusted Book Value rises to over $40 versus $8 trading price today.

    There could be a Porsche/VW type of situation where there simply aren't enough shares to cover a short position - could cause a "rip-your-face-off" rally.
  • T
    THINK!
    Short interest remains very high at 39.8 million shares, down slightly from 42.5 million shares in previous reporting period. I am perplexed why news of PR's "found" extra $5 billion not having a better effect on MBI. Has to be better for bondholders. As far as stock buybacks go, the additional $250 million for buybacks already set aside, it doesn't have to be earned to spend on buybacks.
  • T
    THINK!
    Good news for MBIA:

    NEW YORK--(BUSINESS WIRE)-- Zohar CDO 2003-1, Zohar CDO 2003-1 Corp., Zohar II 2005-1, Limited, Zohar II 2005-1 Corp., Zohar III, Limited, and Zohar III, Corp. (collectively, the “Zohar Funds”), Lynn Tilton, MBIA Insurance Corporation, a wholly owned subsidiary of MBIA Inc. (NYSE: MBI), and the Zohar III Controlling Class of Noteholders jointly announce today that the parties have mutually resolved the motions pending in federal Bankruptcy Court in the District of Delaware relating to the Zohar Funds, and have agreed to a deal that will include a stay of all pending litigation between the parties.

    Reduction in risk for the mothership. Maybe more confidence to proceed with buybacks now?
  • W
    Walle
    According to court records, MBIA has insured about $1.04 billion of $1.84 billion of notes issued by the Zohar funds.
    What happened to May 18th hearing, any news?
  • W
    Walle
    The Mgmt buybacks is one of the key things to note.
  • T
    THINK!
    49% of shares outstanding were short as of October 31. Shares are selling on the open market for around .57 of current book value, (assuming 91.8 million shares total). A new share repurchase authorization of $250 million has been announced, immediately after $225 million of share repurchase authorization exhausted in a little over one month. Should management continue the buyback spree, and shorts don't cover, there would be almost 70% of outstanding shares shorted. A squeeze at that point could leave a serious bruise to a shorts' portfolio.
  • T
    THINK!
    kevin,
    Last quarter you made the assertions that there would be a 'going concern' statement in the Q4 earnings release. There was not. You also stated the $250 million share buyback would not be allowed by regulatory agencies, but at least $14 million has been used, and the conference call still referenced the $236 million remaining. To be fair, there were far fewer shares repurchased than I had hoped, and there was substantial opportunity to do so, but management did repurchase the 100 million Euro denominated MBIA Global Funding LLC medium-term note maturing in 2021 at a 16% discount to par. While I agree that the company is in runoff, as it is not writing new business, that does not mean it is without value, nor that there is not an opportunity to make profit on the long side. The PR exposure will cost National $970 million over the next 5 years if PR continues zero debt service and there is no resolution to the legal issues in that time frame. Let's remember that there will be investment income related to National's investment assets during that time frame which will reduce the net impact of that outlay. I concede the possibility that the litigation can be drawn out for a protracted period of time. However, this assumes that PR's legal positions are upheld by the courts as well as the inevitable appeals, and from a legal perspective, this is dubious at best. National's legal protections are pretty solid. It is likely there will be substantial recoveries of claims already paid. If your short premise presupposes that MBIA runs out of money and is dissolved before it can achieve some recovery on PR losses, I think you are mistaken. I do believe that you run substantial risk by being short if any of the following occur: settlement or consensual restructuring of debt, further substantial reduction of share count via share buybacks, or the sale of the company to deeper pockets like Assured.