MBIA, Inc. is engaged in providing financial guarantee insurance and investment management and financial services to public finance clients and financial institutions on a global basis. Financial guarantees for municipal bonds, asset-backed and mortgage-backed securities, investor-owned utility bonds, and collateralized obligations of sovereigns, corporations and financial institutions, both in the new issue and secondary markets, are provided through the Company's wholly owned subsidiary, MBIA Insurance Corporation. The Company also provides investment management products and financial services through a group of subsidiary companies. These services include cash management, municipal investment agreements, discretionary asset management, purchase and administrative services, and municipal revenue enhancement services.

April 2, 2001

As traders continue to dodge bullets in the slow grinding technology sector, opportunities appear to be rising lsewhere. One such opportunity is MBIA Incorporated (MBI), which offers insurance for new issues of municipal bonds, including bonds held in unit investment trusts and mutual funds. Growth prospects for the company are inherently tied to interest rates, which currently make the stock timely because of the recent rate reductions by the Federal Reserve. What’s more compelling to us though is the fact that the company announced a 3:2 stock split back on 3/15/01, which will be payable to shareholders of record on 4/20/01. We’re anticipating a possible split run into the payable date. Looking at the chart, MBIA shares, after falling from an intraday high of $83.80, managed to hold above the previous high of $81.10. Today’s advance came on volume of 1,121,900 shares, nearly 100 percent above its three-month ADV. This is an excellent indication that momentum players added positions on the breakout. The short-term technical readings also points to higher levels, with a bullish crossover in the MACD and the OBV planted firmly near year highs. As far as entries in MBI are concerned, a move above today’s high of $83.80 could prove to be an excellent entry point. A bounce off support offered by the 3/08/01 high of $81.10 may also prove to be a good entry level. We’ll set stops near the 40-dma at $76.50 to limit our downside risk.

Picked on April 2nd@ $81.70
Change since picked 0.00
Stop Loss @ $76.50

April 8, 2001

Heavy selling affected nearly every financial stock on the day, as two major energy companies raised issues of credit quality when they issued a $9 billion bankruptcy filing. MBI was no exception to the downdraft. Our stop at $76.50 was taken out in brisk trade.

Picked on April 2nd@ $81.70
Profit/Loss = -5.20 (-6%) (Stopped Friday @ $76.50)
Best Profit = +1.60 (+2%)