NMI Holdings Inc (NMIH)

[tommiegun54]

MGIC(MTG) GOOD OPPORTUNITY/ALTERNATIVE TO NMIH

MGIC is expected to end 2019 with a book value of $12.02 according to CREDIT SUISSE ANALYSTS. While NMIH is trading at 2.3 times it's book value. MTG PRICE EARNINGS RATIO IS 7.28 VS 14 for NMIH.

MGIC PAYS A 2% DIVIDEND. MGIC has the highest net operating income of 4 PMI PUREPLAY COMPANIES. They ended 2018 at $660 million NOI.

CASH FLOW/POSITION: 'As of June 30, 2019, we had approximately $333 million in cash and, investments at our holding company. These resources are maintained
primarily to service our debt interest expense."(FROM SEC 10Q JUNE 2019)

If, MGIC WAS TO maintain a cash cushion of available assets EQUAL to 20% in excess of requirements, they would have a book value of $13.26 per share. MTG current market is $12.49 per share.

"Capital Adequacy
PMIERs
As of June 30, 2019, MGIC’s Available Assets under PMIERs totaled
approximately $4.4 billion, an excess of approximately $1.1 billion over its
Minimum Required Assets; and MGIC is in compliance with the requirements of the PMIERs and eligible to insure loans delivered to or purchased by the GSEs."

Data from SEC 10Q JUNE 2019