investingfromtheright

I am retired and take educated guesses on all things financial.

December 12, 2007

December 13, 2007: Two bond rating companies I like and a few yield rich selections

OK. Common wisdom is that there are shoes yet to drop in the financial mess. My opinion is that this view is correct. but that there are some stocks that beg attention at this moment.

I already admit to owning Citigroup (C) - too soon.

I recently purchased Anally Mortgage's perpetual 7.85% preferred at a discount to yield 9%.

Here are a few others I may well nibble at for growth, yield - or both. The market is punishing too many stocks too severely in the financial and insurance sector. These are worthy of diligence to purchase.

Assured Guaranty (AGO) is trading about at about $21. This Bermuda-based re insurer has business all over the world and some sub prime exposure. t was savaged down to 14 last month, and I regret not loading up on the shares. There is still lots of upside on this security and I think it is worth $35-40 share.

MBIA Financial (MBI) trading at approximately $32 was a $73 stock a few months ago. Cash infusions into this highly regarded bond rating company and a 4.2% yield makes it very attractive.

Ambac Financial (ABK) trading at $21.00 was a $96 stock a few months ago. With worldwide business mitigating a significant sub prime exposure, this company has been grossly oversold. The yield is around 3%.

If you want a load of yield literally forever, consider the perpetual preferred stock of Ambac.

The 5.95% of February 28, 2013 trades at about 16 and the 5.95% of March 24, 2013 trade at 16 as well, yielding over 9%. This is a premium return on a quality company.
Both are callable at $25.

There are some great buys in these areas if you look past the obsession with the usual big boy financials and invest (speculate for some)in some lesser known securities.

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