Mortgage Insurers: Risk and Reward

Since I have been writing about mortgage and financial insurers, here is another interesting post which I came across on seeking alpha which provides even more detail analysis on ABK, MBI and RDN.

Risk/Reward Analysis Makes Financial Insurers a Buy

Looks like more folks have started noticing recent run-up in these companies. Even today when Dow was down nearly 250 points, ABK and RDN made a nice upward move. While I am cautiously optimistic on these companies, one may want to wait for some time to take positions in these companies. My recommended price to take positions in these companies is ABK less than 6, MBI less than 10-11, RDN at 3 and PMI at 3. At these entry points, these companies have potential to give returns of 50-100% in next 18-24 months Good luck and good night ! /Shyam