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Market Breakfast: MBIA Inc. (NYSE:MBI), Walter Energy, Inc. (NYSE:WLT), Organovo Holdings Inc (NYSEMKT:ONVO)

Boston, MA 07/01/2014 (wallstreetpr) – MBIA Inc. (NYSE:MBI) suffered a downgrade over worries relating to its debt exposure to Puerto Rico. Analysts at BTIG reduced the stock to Neutral from a Buy because of MBI’s significant exposure to Puerto Rico Electric Power Authority (PREPA) debt. The analysts warned investors to stay on the sidelines with MBI until the debt restructuring situation in Puerto Rico becomes clear.

However, the analysts, Giuliano Bologna and Mark Palmer, believe that MBIA Inc. (NYSE:MBI) has attractive long-term prospect. Their observation is based on the fact that the mortgage insurer has strong financial footing that it is capable of facing even a worst-case scenario in Puerto Rico bond restructuring without hurting its financial health.

As such, the company is sufficiently capitalized to meet losses associated with debt restructuring in Puerto Rico, which means that most of the negative commentary about the company are misplaced.

The next few weeks should provide clarity about the debt situation in Puerto Rico.

Although Walter Energy, Inc. (NYSE:WLT) stands far from the days when it traded in the neighborhood of $140 per share in 2011 to hovering about $5.45 in the present day, all is not lost for the company as it has chances to rebound. The two factors that make it possible for the company to regain its footing in the troubled coal business is that the new rules by Environmental Protection Agency have had little impact on its operations. The company is also making efforts to save itself by undertaking various cost-cutting initiatives that include idle of plants. As such, the company should be able to survive the poor demand and prices for coal. In other words, investors with a long-term outlook in the coal industry have a Walter Energy, Inc. (NYSE:WLT) as an investment opportunity.

Organovo Holdings Inc (NYSEMKT:ONVO) will not sell its 3D Human Liver Tissue models online but will offer them only for testing services. The company expects to introduce the models by the end of this year. The company recently gained support on its stock following a positive study finding by Roche scientists who used 3D Human Liver Tissue for an important test.

Published by Lisa Ray

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.



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