Radian Group, Inc., through its wholly owned subsidiaries, Radian Guaranty Inc. and Amerin Guaranty Corporation, provides private mortgage insurance coverage in the United States on residential mortgage loans. For the 9 months ended 9/30/00, total revenues increased 11% to $455.4M. Net income applic. to Common rose 87% to $182.1M. Results reflect strong new insurance volume, lower policy acquisition costs and the absence of merger expenses.

December 21, 2000

Radian is a provider of private mortgage insurance. Now that the Fed has changed to a neutral bias, the threat of higher rates has subsided. Home sales are likely to stabilize and possibly start to increase in the coming months. In fact, they already are. Yesterday, housing starts came in at an annualized rate of 1.56 million units in November, the highest rate since June, which proves that low borrowing costs are keeping housing demand high despite increasing worry about the overall economy. This is very good news for Radian. After a solid week, Radian's share price is on the verge of making a new high. The current all time high is $73.13. A low P/E of 11.99 is yet another attractive feature that encourages taking a position in the stock. Additionally, the MACD has been rising steadily this month and the OBV and Money Flow are well off their highs for the year. These indicators are stable and are slightly bullish. A break into new high ground could attract another round of buying from momentum traders.

Picked on December 21st @ $72.31
Change since picked +0.00
Stop Loss @ $67.00