Tom Brown submits: A number of readers wrote to ask what the heck I meant, in my rhapsodic reaction to MBIA’s (MBI) second quarter earnings report, when I referred to MBIA’s “adjusted book value” of $39.63 per share. Here’s a shortish answer: MBIA’s adjusted book value is its reported book value of $16.67 per share, with a number of items that aren’t part of the company’s book value yet, but almost certainly will be in the future, added back in order to provide a more appropriate, accurate starting point for determining the company’s intrinsic value. The add-backs include: Complete Story » ...
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Tom Brown submits: A number of readers wrote to ask what the heck I meant, in my rhapsodic reaction to MBIA’s (MBI) second quarter earnings report, when I referred to MBIA’s “adjusted book value” of $39.63 per share. Here’s a shortish answer: MBIA’s adjusted book value is its reported book value of $16.67 per share, with a number of items that aren’t part of the company’s book value yet, but almost certainly will be in the future, added back in order to provide a more appropriate, accurate starting point for determining the company’s intrinsic value. The add-backs include: Complete Story » ...