MGIC Investment Shares Surged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of private mortgage insurer MGIC Investment (NYSE: MTG  ) jumped as much as 15.6% amid fairly heavy trading and a generous sprinkling of fairy dust.

So what: Real estate e-formation specialist Zillow (Nasdaq: Z  ) just published a study saying that the free-falling prices of American homes could start to bounce back in 2012. A survey of 109 economists places the rebound in early 2013 at the very latest.

Now what: Homebuilders are sitting out this jump because they got theirs earlier this week. Fellow PMI insurer Radian (NYSE: RDN  ) , on the other hand, is enjoying a double-digit jump as well. This potential turnaround comes too late for largest PMI expert PMI Group, which filed for bankruptcy in November -- only the strongest businesses survive a multi-year market slump.

Interested in more info about MGIC Investment? Click here to add it to My Watchlist.

Fool contributor Anders Bylund holds no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Zillow. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.


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