Last year’s best-performing Top Pick was chosen by The Turnaround Letter Editor George Putnam. His Top Pick for 2012, OfficeMax (OMX), racked up gains of 110% over the course of the year, edging out the competition.
This year, it looks like Putnam may have done it again: his Top Pick for 2013, MGIC Investment Corp. (MTG), is already up 112%! Read on for Putnam’s current opinion on MTG.
“Our Top Pick for 2013, MGIC Investment Corp. (MTG, NYSE), has performed very well over the first half of the year, but we believe that the mortgage insurer still has plenty of gain potential remaining. MGIC raised new capital in early March, which removed much of the risk of regulatory problems. The ongoing recovery in the housing market will continue to boost the company’s performance. The rise in home prices makes it less likely that homeowners with older policies from MGIC will default, and this reduces losses from pre-2008 business. In addition, an increase in home purchases provides the company with the opportunity to write more new business at very profitable rates. As a result, we expect MGIC to post improving results which should boost its stock price.”
George Putnam, The Turnaround Letter, www.turnaroundletter.com, 800-468-3810, July 2013