Zacks Analyst Blog Highlights: Ambac Financial, Huntington Bancshares, MGIC Investment Corporation and MBIA Inc.

CHICAGO--(Business Wire)--
Zacks.com announces the latest Industry Outlook. Today`s outlook from Zacks
Equity Research analyst Eric Rothmann who discusses the financial sector.
Highlighted stocks include: Ambac Financial (NYSE: ABK), Huntington Bancshares
Inc. (NYSE: HBAN), MGIC Investment Corporation (NYSE: MTG) and MBIA Inc. (NYSE:
MBI).

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Here is the latest on the Financial sector:

Even though it appears that financial institutions have moved ahead with respect
to the unfreezing of our banking system, they remain reluctant to lend. With
financial institutions afraid of the potential of additional losses, their
current Anaconda grip on lending only exacerbates the problem.

While we continue to see financial institutions advertise their willingness to
lend, the hook remains, "qualified" home buyers. Clearly, the definition of
"qualified" has changed dramatically over the past year to mean "pristine
credit".

As credit score requirements continue to be ratcheted higher, additional hurdles
have been added.

Credit card client "profiling", with respect to their shopping habits, has
increased. So by example, you previously shopped at a gourmet grocer and now
it`s predominately at a Super Target or Wal-Mart. Even though the change stemmed
from being fiscally more responsible in trying times and you continue to pay
promptly, potentially you could see your credit card limit cut without notice,
which in turn raises your balance-to-credit limit ratio (a bad thing), which
negatively impacts a potential mortgage (i.e. NO MORTGAGE FOR YOU!!).

Therefore, it does not really matter how low interest rate levels go if you
cannot get credit.

Let us be clear, it is appropriate for financial institutions to ease or
contract lending requirements depending on their exposure to risk within various
economic environments, given their responsibility to depositors, bondholders,
and shareholders. However, when a financial institution partakes in a
"government bailout," there is the implied quid pro quo. Unfortunately,
financial institutions do not appear to be willing to play by the same rules.

Where does the fault lie? With ourselves for not understanding our personal
finances and what we could ultimately afford, as well as our senators and
congressional representatives (from both sides) that kept pushing the idea that
everyone needs to buy a home.

Despite the President-elect having his incoming team working on a "stimulus
plan" proposal now, the benefits may not be visible until the summer. As such,
the pressures the financial institutions have experienced over the past year, do
not appear to be lessening anytime soon.

Opportunities

While we do not cover the area, the only bright spots could be for the pay-day
lenders and pawnbrokers, currently.

Weakness

At this point in time, with no positive catalysts visible we remain more
negative on the near-term prospects. In 2008, we covered our Sell
recommendations on the shares of Washington Mutual and Ambac Financial (NYSE:
ABK). (Combined, these calls yielded in excess of a 90% return). We continue to
retain our Sell recommendation on the shares of Huntington Bancshares Inc.
(NYSE: HBAN), MGIC Investment Corporation (NYSE: MTG) and MBIA Inc. (NYSE: MBI).

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