Radian Group, Inc.: Warming Up or Cooling Off? (RDN)

Radian Group, Inc.: Warming Up or Cooling Off?

By Motley Fool Staff | More Articles
November 22, 2009 | Comments (1)

Together, we are all trying to build our fortune by finding well-run companies at bargain-basement prices. But it takes work -- scouring company earnings reports, scrutinizing key data, and assessing the competition.

Because of that, we've created a screen based on the massive data aggregated from the more than 140,000 investors competing on our Motley Fool CAPS platform. Each quarter, we check in on select companies after they file a 10-Q and track community sentiment -- so you can see how your company is doing.

Here's the community sentiment on Radian Group, Inc. (NYSE: RDN ) both this quarter and last (for comparison), as well as opinions on some related companies.

Metric	Radian Group, Inc. (NYSE: RDN )	First Financial Northwest (Nasdaq: FFNW )	Flushing Financial Corp (Nasdaq: FFIC )	TrustCo Bank Corp NY (Nasdaq: TRST )
This Quarter (11/13/2009):
Price:	$5.45	$6.05	$10.39	$5.81
% of Members Rating Outperform	62%	70%	66%	62%
% of All-Star Members Rating Outperform	49%	25%	47%	54%
CAPS Rating (out of 5)
Last Quarter (8/15/2009):
Price:	$7.45	$7.62	$12.70	$6.29
% of Members Rating Outperform	62%	67%	65%	58%
% of All-Star Members Rating Outperform	58%	67%	57%	57%
CAPS Rating (out of 5)

Source: Motley Fool CAPS. Dates given are the posting dates of Radian Group, Inc.'s most recent quarterly and/or annual reports to the SEC's website. Percentages are calculated from the number of members rating each company.

A change in the community's approval (signified by four- and five-star ratings) or disapproval (one- and two-star ratings) could indicate that further research is in order. To help make your research easier …

Share any thoughts you have about Radian Group, Inc. -- or any of the other companies mentioned -- in the comments box below.
Head over to the completely free CAPS service -- a one-stop research shop -- and read what your fellow investors are saying about your stocks.

Best Odds in the Universe!
If you're interested in a 98.79% chance at beating the market... and a 70.84% chance at DOUBLING the market's return – Motley Fool Supernova could be just what you're looking for. And get this: We arrived at these odds from 10,000 random back-tested portfolios composed of Motley Fool Co-founder David Gardner's personal stock picks.

It's why David recently handpicked a small team of world-class portfolio managers. You see, he thinks these odds can get even better! And he'd like to prove it to you...

Simply enter your email address. And the answer to the question everybody is asking will be delivered to your inbox!

As this was built out of a screen, no individual person selected the stocks in this article, so there is no author to disclose an interest in them. Since this article was automatically generated by identifying the stocks loved both by the CAPS community and by buyers in today's market, it is possible that Motley Fool personnel (and even The Motley Fool itself, through our Million Dollar Portfolio, Hidden Gems, Motley Fool Pro, and Ready Made Millionaire services) have positions in these stocks. We thought you'd like to know that. Learn more about The Motley Fool's disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On November 24, 2009, at 5:49 PM, Insightful77 wrote:

Let's review some other issues that Radian may have. In the Fall of 2000 they purchased Enhance Financial Services Group, Inc. which amoung its holdings was Enhance Re a major reinsurer to MBIA and AMBAC. AMBAC's CFO resigned today according to a announcement and AMBAC also has warned that they may be forced into bankruptcy. At the same time Radian purchased with Enhance a company now named Radian Asset Assurance. I found this quote at this link:http://www.radiangroupinc.com/pdf/S&P_RadianAssetInc_5-2... "Radian Asset is a New York State domiciled financial guaranty insurance
company. Its immediate parent company is Enhance Financial Services
Group Inc. and its ultimate parent is the Radian Group. The company had a
successful year in 2003 in the U.S. public finance market, with gross par
insured increasing by 34% to $2.9 billion. Public finance adjusted gross
premiums written were up by 39% in 2003 to $89.0 million. The composition of
Radian Asset's insured public finance book of business reflects its niche
position in the market and resulting origination strategy. The health care
sector, for example, comprises 17.7% of total exposure. The industry average
is about 4.9%. However, Radian Asset's health care exposure is down from
20.7% as of Dec. 31, 2001. Likewise, higher education insured debt is 9.4% of
exposure compared to about 3.0% for the industry average. Expanding
opportunities beyond health care and higher education is a goal for the
company in 2004" It seems they have exposure to student loan losses in CLO and CDO exposure as a financial guarantor as well as their reinsurance exposures. This on top of their ever increasing exposure to a residential prime market downturn in their PMI will cause their short term prospects to dim.