Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (27529)	7/31/2007 3:21:55 PM
From: Paul Senior	Respond to of 78740

ABK. Maybe. We just don't know the extent of this subprime or other prime mess. ABK has now written down some of these loans. Perhaps though, that's just for this quarter. I've no idea if they mark-to-market and what could happen if the market value continues dropping. Or even if there is a market for these debts. For an insurer, man, I would expect these guys to better protect themselves from these risky investments. If they, with all their analysts, couldn't avoid the current problem, maybe their reach for ever higher earnings has exceeded a prudent height. Apparently not only are they a holder of these type loans, they are a writer of such complicated financial instruments. ugh. The p/bk for ABK is now about 1.15. That is very low indeed for this company. The company is the dominant player in its business of municipal insurance. In past, it's been very profitable with earnings increasing about every year for the past ten (10-yr. S&P chart). On balance, I say it's worth a small bet. I'm in now as of a few minutes ago. Bwdik. I have had AHM bought from $30 down to $23, and all sold today @$1.44/sh.