Any opinions about GNW ?

[Petrovale]

Today's 22% drop is rather impressive. Blame it on management, I suppose. It's now either severely undervalued or a serious POS... Anyone holding this stock??

[Petrovale]

After yesterday's 25% sell-off, Genworth shares are in the bargain bin. The stock now trades for about 5 times earnings, and way below book value of $33.69 per share.

Current PPS bottom is $5.77.

[Gator]

Petrovale

Thanks for pointing it out. Not a name I have played in the past (except the bonds) buy I might look for an entry point. MS put out a report that talkes out of both side of the mouth. Hope this helps

Genworth Financial, Inc.
One Step Forward, Two
Steps Back
News of a delay in its Australian mortgage
insurance IPO together with recent data showing
deterioration in LTC more than offset signs of
improving trends in domestic mortgage insurance.
Summary: We presently recommend investors stay on
the sidelines with Genworth stock. While recent data
suggests the outlook for domestic mortgage insurance is
improving, news surrounding the delay in the IPO of its
Australian operations together with discouraging data
regarding the state of its long term care operations lead
us to reiterate our Equal-weight rating despite the
stock’s low valuation.
Delay in Australian IPO: News of sharply deteriorating
fundamentals in its Australian operation driving the
delay in the planned IPO of a minority stake in these
operations is a significant negative, both in terms of the
earnings profile and capital position of the company.
Deterioration in long-term care: In addition, statutory
statements filed last week also show a meaningful
deterioration in the performance of its long-term care
operations, which increases the risk of additional
charges being taken later down the road.
Partial offset — domestic mortgage insurance:
Recent MICA data suggests a solid reduction in new
delinquencies and improved cure rates compared to
what was seen in the fourth quarter, which is
encouraging on the margin. That said, we still believe a
sizeable capital injection will be needed if the company
wants to maintain them as a going concern.

[j.coolaid]

I know I like Radian(RDN) that up to 4.20 area recently has had significant insider buying ......Like GNW, it also has been hit hard..Book at 8.88 I think..Current pps of 3.22 last I saw...but betting hard that IOC is my BIG winner ...Just wish I had More Money!

[Petrovale]

Thanks guys, I appreciate your input. In my case, also, IOC is the biggest bet. But it's good to think of other stocks, too. Burnt my fingers on LDK & ATPG last year. To compensate, I made some money on Coastal Energy, where, I think, <15.65 would be a nice re-entry point. GNW doesn't have much of a bounce, so far, so I prefer to react, rather than anticipate, thinking of the MS report.

[Gator]

It is hard for me to get excited about any financial stock, based only on book value because so many are under book.
A few ideas in the resource area that are small cap and could be worth more than “double or nothing”, depending upon Government approvals (binary event) would be AZC (copper in AZ) NAK (gold in AK).

ACI and BTU and ARLP are all coal stock that were killed due to $2 nat gas, they all look to be bottoming and pay dividend .

I think MCP could have huge upside in the rare earth sector as they are not in China. If you are not too afraid of China in that sector is REE.

Also a China small cap that could do very well is GURE (bromine).

IPSU is a very interesting play in sugar.

Extreme caution to all, not for widows or orphans . Do your own due diligence.

[Petrovale]

Moody's Reviews Genworth Australia's Rating For Possible Downgrade