MGIC (MTG) Posts 43.4% Fall in Profits!

MGIC (MTG) is a mortgage insurer who reported 43.4 percent first quarter profit short fall as losses and expenses cut into its business. I would like to direct your attention to an article released by Reuters earlier today titled "US Credit-Mortgage Insurers' Subprime Risks Seen Overdone". I am including some excerpts but anyone can view the article at:

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070411:MTFH23776_2007-04-11_20-07-57_N11578333&type=comktNews&rpc=44

"Just earlier, BarclaysCredit spreads of U.S. mortgage insurers have been battered by worries about risky subprime mortgages, but are likely to improve in the near term as the companies turn in robust first-quarter results."

"There's no doubt to our minds that there's potentially value in the mortgage insurers, and certainly near-term value," Credit Suisse analyst Leslie Mapondera said on Wednesday."

"The largest U.S. mortgage insurer, Mortgage Guaranty Insurance Corp. (MTG.N: Quote, Profile , Research), which reports its results on Thursday, is likely to perform better than expected in the near term, making it a good time to sell credit protection on the insurer's bonds, Barclays Capital said in a note on Tuesday."

So, this once again shows the spin placed by the crooked wall street analysts who up to the earnings release day, got the retail investors into this stock, which pinned false hopes of turn around, and minimizing the impact of subprime, did a near criminal service to the investment community. It affirms that the main stream financial community and the media does not have the grips on how severe the subprime and housing related issue is to the economy. I think everyone needs to wake up and smell the coffee and trust no one. It is as bad as you think it is and perhaps worse.

Do not trust wall street analysts. Subprime issues are real and its effects will now begin to snow ball into other previously safe havens in mortgage lending and housing related stocks.