MGIC Investment Corp. (MTG)

[tommiegun53]

UPDATING MGIC INVESTMENT POTENTIAL 2% NOTES CONVERSION NUMBERS:

2% Note balance of $207 million plus accrued interest, forced conversion date is April 17, 2017.

Convertible shares at 100% convertible balance at par is 23 million shares approximately not 30 million.

A 23 million MTG SHARE REPURCHASE may seem large however, MGIC was able to repurchase 18 million shares as part of $292 million 2% notes payment started in August 2016 and, it was completed in October 2016. So, in essence we are only talking about 5 million more this time.

MGIC HOLDING COMPANY should exit December 31, 2016 quarter with approximately $305 million in cash Equivalents. The next bond payment is $144 million in May 2017.

When MGIC CEO, Patrick Sinks, spoke about the conversion of the remaining 2% note balance of $207 million, he said MGIC INVESTMENT has more financing and other options ie. cash options etc., than at anytime in the last several years since "The Great Recession".

For more background, see Crédit Suisse, MGIC share repurchase analysis and outlook by Douglas Harter, Analyst.