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1 point posted on 09/09/08

51%

jimmyneutron:

-15.51%
risk: conservative

RDN- AAA rating on the way

According the CFO, RDN is 97% of the way to getting their AAA rating, but the rating analysts are just too nervous about their own jobs to stick their neck out.

RDN has a capital ratio that is better than 10:1.

The market is overreacting and there is tremendous upside to this stock.

Book Value per share is $30, which includes $2.1 Billion in write downs just in case they have to pay.

Come on people, wake up.

Related to:

RDN

Radian Group Inc.

Comments (5)

Add Comment

loneranger

38%

1 point commented 431 days ago reply

seems unlikely to me especially after the rating companies have burned themselves recently

abates

N/A

1 point commented 441 days ago reply

correct me if I am wrong but dont only 5 companies have AAA ratings?

jimmyneutron

51%

1 point commented 440 days ago reply

Yes for now. This is all a FAS 157 accounting issue. No cash is changing hands. RDN set aside $2.1 Billion in potential losses, but has only paid out $440 million.

AS time goes by, if they don't have to pay out all the losses, they get to charge it back up to their balance sheet and earnings statement.

Pop!

nextfundmanager

N/A

1 point commented 430 days ago reply

sounds like some window dressing from this cfo

traderdrew

51%

1 point commented 429 days ago reply

I am sure there are plenty of other CFO's saying that same thing but I am dubious of the likelyhood

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Radian Group Inc. (RDN)

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