James Cole, BA, CFA
PMI Group Inc
PMI-N
TOP PICK
Feb 18, 2005
(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.