CEO Brown bought 100,000 shares of this mortage insurer in Nov 2010 at 10.  The media has had lots of play about mortage irregularities and the potential of claims MBI and others might have against the offending banks that created these deficient mortgages.  MBI has also made progress in splitting itself into two businesses, the good one that insures municipal bonds, and the bad one, you know your home, etc. Single family housing has reached levels that don’t support further price destruction as the cost of building is now substantially higher  than the existing housing stock.  On the other hand, the  municipal market, the “good” one is not viewed favorably at all now. At any rate things are rarely as bleak as you think they are especially when there is strong insider buying.  Then again the balance sheet which is what this is all really about is as opaque as ever.  It’s a short term play and I dont’ have a lot of confidence on this one but I dont’ see a wipeout below 10.

%d bloggers like this: