Taking some profits with Radian Group and MGIC
I took some of my position in Radian Group and MGIC off the table yesterday. I sold half of my position in MGIC and about 30% of my position in Radian.
The stocks have moved quite a lot in a short period of time. I was buying MGIC at under 80 cents a month ago. I bought Radian in the mid-$2’s in July. These are pretty big moves.
The fundamentals behind the stocks are improving. My thesis that the housing market is bottoming is showing more evidence of playing out. Delinquencies are falling, foreclosure rates are falling.
Yet while I remain optimistic that they can outrun their legacy book, the possibility remains that they won’t.
There were a couple of events today that outlined that uncertainty.
Reminiscences of a Stockblogger 