James Cole, BA, CFA PMI Group Inc PMI-N TOP PICK Oct 18, 2004

(A Top Pick Oct 18/04. Up 5%.) Insure "higher loan to value" mortgages in the US. Also in the financial guarantee business. Because of wide spread concerns of a housing bubble in the US, mortgage insurers have fallen to trading at 9 X earnings and 1 X this year's tangible Book. Feels concerns are overblown and the prices offer very little downside and very good upside in the long term.

(A Top Pick Feb 18/05. Down a fraction.) Engaged in the private mortgage insurance. Still likes. Should give a very good rate of return over the long term.

They are in private mortgage insurance. Has lagged its group for no particular reason. Trades around 9 X earnings, not much over tangible book value. Great company. Strong financial position.

(A Top Pick Jan 17/06. Up 5.5%.) Things continue to go well with this company.

(A Top Pick Jan 7/06. No change.) Private mortgage insurance. Mortgage losses have started to rise. Very good value.