NMIH strength during fearI believe this sector will perform
Going forward. As the market continues to be fearful and uncertain, insurance plays will shine. A quick review of its competitors and this stock is valued less but with better financials and growth. This monthly wedge setup is very bullish after a very nice run for the stock. This small cap is overlooked.
NMIH trade ideas
NMIH Bullish outlook.Fundamentels
- Very strong earnings grow expectations. Management reports it excellent ( and that word is not much used in my reports)
- Good price earnings spiral.
- Stock should have at least been priced need the 44-45 range in my opinion.
But if you look further ahead with a p/e of 15-20 the stock should be priced between 60 and 80 which is easy to estimate with these strong fundamentals.
Technical
- I saw a great R/R setup with stops need the bottom of this last block-range.
- I think this trade volume (VWAP) drives up this price on a very fair pace. I think it with the last volume dips it's clear we heading to a time with a lag of liquidity. This could result in some volatility in the range between 38-40 with bullish pressure.
Strategic
- The company is a Tech-leaning Insurance company for mortgages, an interest that will grow when economic tension rises. What a great company. Making money from the insurance of the most bubbly asset in the world. Large demand I would say, probably this company will blow up in times of a housing crisis because these models will be heavily biased I guess. But if the risk department would buy CDS'S it could be a very fair business model --- if they will be covered this time ---- how could you even cover that CDS"S, please tell me in the comments.
NMI Holdings Inc 🧙NMI Holdings Inc through its subsidiaries provides private mortgage guaranty insurance. The company offers mortgage insurance, reinsurance on loans and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, Internet-sourced lenders, and other non-bank lenders.
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$NMIH can rise in the next daysContextual immersion trading strategy idea.
NMI Holdings, Inc., through its subsidiaries, provides private mortgage guaranty insurance services in the United States.
The share price rose after the company announced the pricing of its private offering of senior secured notes due 2025 (the “Notes”) and increased the aggregate principal amount of the offering to $400,000,000.
The demand for shares of the company still looks higher than the supply.
These and other conditions can cause a rise in the share price in the next days.
So I opened a long position from $18,67;
stop-loss — $17,52.
Information about take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
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$NMIH STRONG MOMENTUM STOCK, BREAKOUT OPPORTUNITY OUR SCANNERS HAS IDENTIFIES THE CHART OF NASDAQ:NMIH AS A VERY BULLISH BREAKOUT CONTENDER IN THE COMING DAYS. CURRENTLY CONSOLIDATING AND FORMING A BULLISH FLAG, SET ALERTS FOR A BREAK ABOVE $29 AND CONFIRM WITH STRONG VOLUME ON A POSSIBLE RETEST.
AVERAGE ANALYSTS PRICE TARGET $32
AVERAGE ANALYSTS RECOMMENDATION BUY
P/E RATIO 16
COMPANY PROFILE
NMI Holdings, Inc. is engaged in the provision of private mortgage guaranty insurance. It focuses on long-term customer relationships, disciplined and proactive risk selection and pricing, fair and transparent claims payment practices, responsive customer service, financial strength, and profitability.