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earnings
It appears that the United States and China have tentatively reached a partial agreement on trade.  Basically, the U.S. would pause further tariffs, while China would agree to agricultural concessions among other things.  Markets have rallied on the news, with stocks moving materially higher and bonds dropping, meaning yields increasing.  I think this is clearly...
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On May 4th, Assured Guaranty reported another phenomenal quarter of financial performance. Operating income was $273MM, or $2.14 per share in the quarter. These figures were up from $123MM, or $.89 per share in the prior year’s quarter. These returns were achieved despite the company adding an extra roughly $100MM in reserves for Puerto Rico,...
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As I write this, the Dow has experienced its longest losing streak since 2011. Nearly 1/4th of the way into 2017, we are finally seeing some real volatility and more attractive investment opportunities are popping up each day.
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As a firm, our biggest position has been Assured Guaranty (AGO) for quite some time. We have written about it extensively and covered the attractiveness of the opportunity in great detail. Today was a great day, as we really got confirmation of the incredible progress that this company is making.
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The biggest U.S. banks have now reported 3rd quarter earnings and they have all exceeded expectations.  2016 started so horribly for the big banks.  Poor economic data globally diminished the prospects of rate hikes, oil’s plunge created worries about the need for increased reserve provisioning, and Brexit had investors worried of a systemic collapse.  I...
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I’ve been writing extensively about the incredible undervaluation of the big banks relative to intrinsic value. Financials in general are by far and away the cheapest and most attractive area of the stock market.  Remember banks have been around for many centuries, and the reason for that is it’s a pretty good business to be...
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Yesterday, Assured Guaranty reported very strong 1st quarter earnings and once again saw an increase in both operating and adjusted book value. Over the last year, the company has grown both metrics by roughly 15%, despite adding material reserves for its Puerto Rico exposures and paying a respectable 2% dividend. The stock still trades at...
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There have been a few good articles lately on market valuations. We are in an extremely odd investment environment with hundreds of billions dollars’ worth of government bonds across the globe trading at negative interest rates. Basically, they are guaranteeing themselves a loss unless they can pick up a few pennies before a bigger sucker...
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AIG came out with exceptional earnings after the close today.  The company earned $3.2 billion in the quarter and had operating income of $1.65 a share versus expectations of $1.13 per share.  The company increased book value to $57.68 reflecting 69% upside from the current price.  Recent sales of the Maiden Lane portfolios and AIA...
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Sears seems to be doing a better job at managing their inventory and halting the decline in same store sales.  These are definitely positive trends but it doesn’t change my agnostic outlook towards the viability of their retail operations.  I think Sears is an asset play and the key thing for investors is to understand...
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