The Panic-Proof Portfolio (Stockchase Research)MGIC InvestmentMTGPAST TOP PICKJul 04, 2023

(A Top Pick Mar 02/23, Up 20%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with MTG has triggered its stop at $16.50. To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 20%, when combined with previous recommendations. 

(A Top Pick Mar 02/23, Up 26.4%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with MTG is progressing well.  To be disciplined, we recommend trailing up the stop (from $15.00) to $16.50 at this time.  

(A Top Pick Mar 02/23, Up 20%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with MTG has achieved its objective at $16.50.  To remain disciplined, we recommend covering half the position at this time and maintaining the stop at $15.00 

Stockchase Research Editor: Michael O’Reilly

MTG provides private mortgage services in the US.  It trades under 10x earnings and under book value.  We like that it is building cash reserves, paying down debt and buying back shares. Recently reported earnings showed net income growth of 36% over the year.  We recommend placing a stop-loss at $11.50, looking to achieve $16.50 — upside potential over 16%.  Yield 2.6%

(Analysts’ price target is $16.19)

(A Top Pick Sep 10/20, Up 62.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MGIC has triggered its stop at $14.75. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 49% when combined with the previous recommendation to cover half the position.

(A Top Pick Sep 10/20, Up 75.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MTG continue to progress well. We recommend trailing up the stop (from $13.00) to $14.75. If triggered, this would result in a net combined investment return of 49%, when taking into account the previous recommendation to cover half the position.

(A Top Pick Sep 10/20, Up 56.4%)Stochchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MTG continues to do well. We are now recommending to trail up the stop (from $9.25) to $13.00. If triggered, this would all but guarantee an investment return of 40% when considering the recommendation to cover 50% previously.

(A Top Pick Sep 10/20, Up 37.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK has exceeded analyst expectations, trading to $12.50. We are being disciplined and are recommending to cover 50% of the position. We are also recommending trailing the stop to $9.25 -- just above the original recommended buy price.

Stockchase Research Editor: Michael O'Reilly MTG provides mortgage insurance in the US, Puerto Rico and Guam. The company released an operational update to end-August indicating the inventory of delinquent loans continues to decrease, with the % of new delinquency notices dropping by over 25% since June. It trades at 69% of book value and EPS is expected to grow to $1.50 per share from $1.44 this year. While still levered to an economic recovery, we make this a Top Pick. The yield is supported by a payout ratio of less than 10% of cash flow. We would trade buy this with a $7.00 stop-loss. Yield 2.69% (Analysts’ price target is $12.43)