MGIC Investment Corp. (MTG)

[tommiegun54]

LOOK FOR PMI COMPANIES TO BEAT ANALYST ESTIMATES THIS WEEK

PMI'S are now rreporting lower delinquencies monthly and quarterly. The reduction in defaults allow the companies to lower reserves per loan or reverse the loan losses Outlook, when considering actual losses.

"$84 MILLION LOSS RESERVES RELEASED FROM LLR AND LAE IN Q4 2020 POTENTIALLY

*IF ADDED TO NET INCOME, THAT'S A $.26 CENTS EXTRA ADDED TO EARNINGS PER SHARE FOR Q4 2020 TO THE ANALYST'S EARNINGS ESTIMATE OF $.39 CENTS

*THE $.64 CENTS EARNINGS PER SHARE, WOULD BLOW APART ANALYST ESTIMATES OF $.39 CENTS

*THAT'S 10% OF Q3 2020 LOAN LOSS RESERVES OF $840 MILLION AS OF Q3 2020

*10% OF LOAN DELINQUENCIES WERE REMOVED LOAN DEFAULTS AS OF DECEMBER 31, 2020

Beating analyst earnings estimates by 66% has not been a pattern that management has taken in the past.

I estimate management will post EARNINGS of $.48 - $.49 cents per share, that's a 25% increase or beat of analyst's estimates for Q4 2020

MGIC HAS ALREADY DECLARED a DIVIDEND on MTG PAYABLE TO HOLDERS OVER THE NEXT WEEK.

I BELIEVE MANAGEMENT WILL CONTINUE TO BUILD LOAN LOSS RESERVES with the remainder of the $84 million savings from reduced DELINQUENCIES."