Not So Magic After All (MTG)

Posted in General 
April 20th, 2010

MGIC Investment Corp. (NYSE: MTG) is getting drilled this morning. The good news is that MGIC’s first quarter loss narrowed and it saw sharply lower claims costs. The problem is that the mortgage insurer said it is going to sell at least $700 million in stock and also $300 million of convertible senior notes in order to repay debt in 2011 and to boost liquidity.

MGIC’s 52-week trading range is $2.00 to $13.80 and average volume is 5.26 million shares.  At 11:02 AM EST we have already almost doubled the average volume with 10.3 million shares and the stock is down 12.8% at $10.91.

JON OGG

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