NYSE:MBI
$5.04
(2/9 2:13PM)
+2.6%
| Open | $5.08 |
Mkt Cap | $1.0 Billion |
| High | $5.17 |
52Wk High | $72.80 |
| Low | $4.9 |
52Wk Low | $2.17 |
| Volume | 2.0 Million |
Avg Vol 10D | 4.2 Million |
Ockham's Rating/Recommendation Summary
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MBI Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, MBI the high and low end of the Price to Sales per share ratios are 4.91x and 1.90x respectively.
Notice that MBI's current Price to Sales per share ratio is 0.35x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $4.81, MBI is 90% below where we would expect to see it. This will beneficially factor into our final analysis of MBI as it is not often that this stock sinks to these levels.
MBI Cash Earnings
Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on MBI from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company.
Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for MBI, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.
MBI Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
News Developing on Naked Capitalism for MBI
As always, the latest news on MBI is available to Ockham clients through RazorWire, and it was mentioned recently on Naked Capitalism.
In comparison to the other stocks that we follow, MBIA Inc. has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. The Ockham valuation currently has a Fairly Valued stance on MBI because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see MBIA Inc. underperforming.
“… This is where Bill Ackman’s open source document, his detailed analysis of MBIA and Ambac came in – he put forth the analysis in January 2008 that showed that they mark to ... …”
MBIA Inc. Was Talked About by Closing Bell
The latest news on Closing Bell in regards to MBI came through on RazorWire recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, MBI has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on MBI. The crowd at The Motley Fool does not like MBI and believes that it will Underperform.
“… Standard & poor's tell us that in the s&p 500 this quarter 7 of the 10 biggest laggers are MBIA, aig, as you can see, marshal & ilsley,cien acitigroup argument real laggers. …”
MBIA Inc. Was Talked About by Power Lunch
MBIA Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.
The Ockham valuation currently has a Fairly Valued stance on MBI because it trades within the price range that we would expect given current market conditions and fundamentals. Considering this stock's recent -8.3% decline, we may become more bullish coming into next week's report as long as the fundamentals remain roughly unchanged. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, MBIA Inc. has actually sunk a bit in comparison to the others. Investors are headed for the exit following today's news as the stock is trading down $0.31. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see MBIA Inc. underperforming.
“… Johnson will be replacing MBIA, the worst performer today on the s&p. Let's head to the big man. Matt nesto. > > big bad man. You left that part out. . …”
Stay Current on MBI's News on Fox Business
News has broken via the television and viral blogs regarding MBI, so investors should take an interest in learning what was said.
The Ockham valuation currently has a Fairly Valued stance on MBI because it trades within the price range that we would expect given current market conditions and fundamentals. In comparison to the other stocks that we follow, MBIA Inc. has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see MBIA Inc. underperforming.
“… Bond insurance like MBIA. Fdic did not get a government rescue and they had 2 trillion dollars in insurance out on these securities and no government rescues, but aig got a rescu... …”
See Who is Talking About News from MBI on Fox Business
The latest news from Fox Business on MBI is available through Ockham's news analytics platform RazorWire.
Denominator in all of the failures have been poor credit quality assess thes. >> that's right. >> you're talking about aig, fannie mae, freddie mac, MBIA, ambac, countrywide, indymac, the common denominator, the problem basically in the risk assessment industry which happens to be the biggest part of it is the credit >> brian: do you believe that the fma or others know how to adequately assess risk?
“… dustry which happens to be the biggest part of it is the credit >> brian: do you believe that the fma or others know how to adequately assess risk? …”
MBIA Inc. (MBI) Discussed on Fox Business's Countdown to the Closing Bell
MBIA Inc. is in the news. Find out how this impacts MBI trading on Ockham Research.
Take a look also the names making the 52-week highs. This is as the dow jones average closed here. This is a new 2009 high. But we're seeing new 52-week highs on everything from coca-cola to pepsi, to starbucks, amazon and names that are the household names there. Ambac, the potential bankruptcy. That name and MBIA were hit hard. Don't forget these are the small market caps and theynu big increments. You can see, certainly some big moves there. For example, down more than 17 points to the up side. See if it holds the gains. >> liz: every time I see starbucks at $21, the annual low for the stock was $7.06. How quickly things change. Well, not that quickly. About a year. The next guest says retail investors are setting themselves up for an embarrassing 2010. Here to tell you how not to get played. Tom sowanick, copresident of omnibus group spending the last hour of trading with us. Nobody wants to get played. Tell us how. >> the issue we're dealing with is the retail investors in particular spend a lot of time in 2009 remembering and what they did is they went to fixed income funds, to the tune of over $260 billion on a net basis, only put $2 billion on net basis in equity funds. Meaning they missed out on the rally from march to today. Missed out on the rally year to date and setting themselves up for what is horrible 2010 when the federal reserve starts to raise interest rates. They're locking in losses. >> liz: so you are saying the worst is yet to come in 2010. And that the way to do that is to make sure that you
“… es there. Ambac, the potential bankruptcy. That name and MBIA were hit hard. Don't forget these are the small market caps and theynu big increments. You can see, certainly some big moves there. For example, down more than 17 points to the up side. See if it holds the gains. >> liz: every time I see starbucks at $21, the annual low for the stock was $7.06. How quickly things change. Well, not that quickly. About a year. The next guest says retail investors are setting themselves up for an embarrassing 2010. Here to tell you how not to get played. Tom sowanick, copresident of omnibus group spending the last hour of trading with us. Nobody wants to get played. Tell us how. >> the issue we're dealing with is the retail investors in particular spend a lot of time in 2009 remembering and what they did is they went to fixed income funds, to the tune of over $260 billion on a net basis, only put $2 billion on net basis in equity funds. Meaning they missed out on the rally from march to today. Missed out on the rally year to date and setting themselves up for what is horrible 2010 when the federal reserve starts to raise interest rates. They're locking in losses. >> liz: so you are saying the worst is yet to come in 2010. And that the way to do that is to make sure that you …”
MBIA Inc. (MBI) Discussed on CNBC's Closing Bell
MBIA Inc. is in the news. Find out how this impacts MBI trading on Ockham Research.
>>> i'm bertha coombs with your closing bell real time flash. Moodies saying aig should be able to repay the federal government loan and that is if operations and markets continue to stabilize. The worst performer is MBIA. Bond insurers saying it incurred bigger than expected losses in insurance giant. Ambac indicated it may file for bankruptcy. Clearwire gaining 7%. The wireless firm raising $1.5 billion issuing shares to sprint, intel and others. Expected to have shares of 43 cents after the bell. "closing bell" after this. >> thank you bertha. The bigger news on the judicial side is the first criminal trial directed at people post the financial meltdown is breaking. Charlie gasparino is covering remind us of the context, charlie, and what it might mean for other people within the financial system who it might be said lied to investors, who knew the meltdown was coming but encouraged people into stocks. >> let's get something straight. These guys did not lie. They have been exonerated of you do make a good point in this I want to back up. This hedge fund blowing up in early 2000, I pointed out in my book "the sellout" this is a key event in the unraffling of the
“… bigger than expected losses in insurance giant. Ambac indicated it may file for bankruptcy. Clearwire gaining 7%. The wireless firm raising $1.5 billion issuing shares to sprint, intel and others. Expected to have shares of 43 cents after the bell. "closing bell" after this. >> thank you bertha. The bigger news on the judicial side is the first criminal trial directed at people post the financial meltdown is breaking. Charlie gasparino is covering remind us of the context, charlie, and what it might mean for other people within the financial system who it might be said lied to investors, who knew the meltdown was coming but encouraged people into stocks. >> let's get something straight. These guys did not lie. They have been exonerated of you do make a good point in this I want to back up. This hedge fund blowing up in early 2000, I pointed out in my book "the sellout" this is a key event in the unraffling of the …”
MBIA Inc. (MBI) Discussed on Fox Business's Fox Business
MBIA Inc. is in the news. Find out how this impacts MBI trading on Ockham Research.
Hanging right now. Back up, just below $300. It's been a huge market. Metals have been ain credible play. Whether it be precious, industrial, you name it. >> david: let me go back to nicole petallides. She's still in the floor of the nyse. The big story is insurers. MBIA and ambac, the other people that ensure the municipal bonds getting hit big-time. MBIA is down 23% right now. This by the way on the heels of some interestingly possibly positive good news from aig, which is that they may be ready to pay back as much as $100 billion of the money they took from tarp. Why are insurers MBIA and ambac going down? >> talk about about aig. America is outraged. It would be good if they paid the insurers move in increment increments. We'll watch MBIA and ambac. But if you haven't noticed the dow jones/industrials turned in positive territory. So s&p and nasdaq still in the red but we'll see to tack on gains here, liz and dave. The down volume out pacing the up volume. Every one of these coming in even bank stocks under >> liz: bank stocks in particular. Let's drill down into those. Those were the ones that were doing well yesterday. Particularly the consumer financials, like discover. Up 6%. American express up 5, 6%, on which part of the day. With so much positivety about where the consumer would be. Today you don't see that. >> I think that what we were talking about earlier, we talked about the regulatory reform. It's something that the traders were telling me. They were sitting on their hands when they were worried about what would happen with the healthcare legislation. Seems to have gotten past. That now they're sitting on the hands again after the gains that we've seen for four days in a row for the dow jones/industrials averageaverage. Sitting on their hands again now waiting to see what happens with the dodd and frank proposal and how they get put together. It could pressure the bank stocks. We know the sheila bair and fdic regulating how much they have to have, built up, how much they have to have at they're building their that may be, part of the reason why they want lending
“… s insurers. MBIA and ambac, the other people that ensure the municipal bonds getting hit big-time. MBIA is down 23% right now. This by the way on the heels of some interestingly possibly positive good news from aig, which is that they may be ready to pay back as much as $100 billion of the money they took from tarp. Why are insurers MBIA and ambac going down? >> talk about about aig. America is outraged. It would be good if they paid the insurers move in increment increments. We'll watch MBIA and ambac. But if you haven't noticed the dow jones/industrials turned in positive territory. So s&p and nasdaq still in the red but we'll see to tack on gains here, liz and dave. The down volume out pacing the up volume. Every one of these coming in even bank stocks under >> liz: bank stocks in particular. Let's drill down into those. Those were the ones that were doing well yesterday. Particularly the consumer financials, like discover. Up 6%. American express up 5, 6%, on which part of the day. With so much positivety about where the consumer would be. Today you don't see that. >> I think that what we were talking about earlier, we talked about the regulatory reform. It's something that the traders were telling me. They were sitting on their hands when they were worried about what would happen with the healthcare legislation. Seems to have gotten past. That now they're sitting on the hands again after the gains that we've seen for four days in a row for the dow jones/industrials averageaverage. Sitting on their hands again now waiting to see what happens with the dodd and frank proposal and how they get put together. It could pressure the bank stocks. We know the sheila bair and fdic regulating how much they have to have, built up, how much they have to have at they're building their that may be, part of the reason why they want lending …”
MBIA Inc. (MBI) Discussed on Fox Business's Countdown to the Closing Bell
MBIA Inc. is in the news. Find out how this impacts MBI trading on Ockham Research.
Stuck in a trading range. Look at movers. Merck is a big winner on the dow jones/industrials and the they just pulled up the best movers, the top performers today which are MBIA, merck and aetna, cigna, winners. The financial targets after the position of schering-plough on down side. Goodyear tire and molson those are -- molson coors. We have martha stewart living
“… schering-plough on down side. Goodyear tire and molson those are -- molson coors. We have martha stewart living …”
MBIA Inc. (MBI) Discussed on Fox Business's Fox Business
MBIA Inc. is in the news. Find out how this impacts MBI trading on Ockham Research.
Keep an eye on the retailers and same-store sales this week. Capital one and wells fargo, positive comments from goldman. Eastman kodak with the up arrows as well. Let's turn the arrows around, here we go, they're looking at the names, but they are to the down side. You can see MBIA to the down side and southwest airlines was cut over at raymond james over to a market perform to an outperform and sprint nextel and down arrows this morning, but you can see, not that bad of movements. There are times when you see things, 5%, 10%, 15% to the down side and these are names that certainly can make a recovery, to recover 2 or 3%, it's certainly easier than recovering 5 or 10%. That being said. Look at what's going on here with the banking index. This group, the bank stocks have been soaring all day long all on positive comments from goldman sachs, upping the u.S. Big cap banks to attractive rating and liking the names and tie-ups they've been seeing in particular. Certainly, with bank of america picking up merrill lynch and they love wells fargo and picking up wachovia so you can see j.P. Morgan picking up wamu and those are names they're loving these names and giving wells fargo a buy rating, up in capital one and putting that one on their conviction buy list, all up arrows there, traders on wall street noting this in the
“… down side. You can see MBIA to the down side and southwest airlines was cut over at raymond james over to a market perform to an outperform and sprint nextel and down arrows this morning, but you can see, not that bad of movements. There are times when you see things, 5%, 10%, 15% to the down side and these are names that certainly can make a recovery, to recover 2 or 3%, it's certainly easier than recovering 5 or 10%. That being said. Look at what's going on here with the banking index. This group, the bank stocks have been soaring all day long all on positive comments from goldman sachs, upping the u.S. Big cap banks to attractive rating and liking the names and tie-ups they've been seeing in particular. Certainly, with bank of america picking up merrill lynch and they love wells fargo and picking up wachovia so you can see j.P. Morgan picking up wamu and those are names they're loving these names and giving wells fargo a buy rating, up in capital one and putting that one on their conviction buy list, all up arrows there, traders on wall street noting this in the …”