RETRANSMIT - S&P KEEPS STRONG SELL OPINION ON SHARES OF MBIA INC.
MBI reports Q4 operating losses we calculate to be $0.83 a share vs. $1.24, worse than our $0.18 operating EPS estimate. Following mark to market writedowns, the Q4 net loss was $3.23 vs. EPS of $2.24. Full year operating losses were $1.86 vs. $2.37, and a 2011 net loss of $6.69 contrasted with net EPS of $0.26. The shares are now trading at 1.7X 12/31/11 tangible book value that we calculate to be $6.36 a share, a premium to most property casualty peers that we do not view as warranted. Our $9 target prices assumes contraction in MBI's forward pricce/book value multiple.