MBIA moving on competitors Wednesday, March 12, 2008
Posted by ei-forum in US Traded Stocks.trackback
Bond insurer MBIA (MBI) will try and make the most of the current situation. It has been raising capital from private and public investors to tackle current concerns regarding their financial situation and also using it to secure more business from competitors that are struggling more than they are.
Is this a good bet? Well, Buffett has started insuring municipal debt so there is a good chance that it’s a very good idea to do so. MBIA CEO Jay Brown has been quoted saying that they have a unique opportunity and they plan on taking it!
Judging by the latest insider buys (N*1 ranking in MSN last 30 day purchases), it looks like management it putting their money on the table:
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I have known the people who run MBIA for more than sixteen years. They are decent and honest people. Unlike people like Ackman and the other fear mongering shorts that will say anything to drive a stock down, they have integrity and morals. When they say that MBIA is capable of weathering a worst case scenario, I KNOW that they are telling the truth. They have individually bought shares at these depressed prices because they know that MBIA is financially sound and that a year from now the financial sector will have overcome its irrational fears. MBIA will not only survive it will flourish. Within three years Jay Brown and his crew will lead MBIA stock back into the mid 40`s. The MBIA Directors listed above have invested their lives in MBIA. They know where MBIA stock will be in a few years because they are running the company. I will follow their lead and profit from my absolute belief in their integrity.
Thank you Robert, even though I do not know them personally, I had a feeling for what you confirmed – great post and contribution – thanks!