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A holding company whose subsidiaries provide financial guarantee products and other financial services to clients in both the public and private sectors around the world.
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EMG114 (< 20) Submitted: 5/06/08 10:32 PM : Start Price: $6.07 ABK Score: 32.02
Because of the weak economy, expect this stock to go down for a while since its stock value has been falling, dropping from $95 to $5 over the past year. While some people may see this as an opportunity to buy some cheap stock, I don't think this stock is going up in the next months. Stay away, it's going to underperform...
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EMG114 (< 20) Submitted: 5/06/08 10:43 PM
Recs: 0 | Rec This
I am seeing a negative number reply (-1)...what's up with that!?
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ayekappy (< 20) Submitted: 5/07/08 10:40 AM
I don't think so. The worst is over for Ambac. The news stories are getting a little nicer Ambac is even crazy enough to do a dividend. I think a lot of negative press was hurting Ambac more than the actual situation. Next quarter might be bad, but not too bad, and then the quarters afterwards should start being pretty nice. Buffett struck quick and hard on purpose; he knew he had to get into the market while Ambac and MBIA were still weak because he also knew that they would rebound relatively quickly (Within 3 years).
EMG114 (< 20) Submitted: 5/07/08 11:26 PM
Ambac can see a little recover later but I don't think it will be very great as expectations are not good right now...
kurtdabear (98.94) Submitted: 7/29/08 12:36 PM
Ambac will be a "former company" in another year or two. They have nowhere near enough capital to cover all their liabilities, and the current financial crisis promises to get much worse before it gets better. Companies that are losing money and need capital should not be paying dividends. This is obviously a ploy aimed at trying to keep the stock value a bit higher than the bottom of the pit for a future desperation attempt to raise capital. Even if a future offering were to succeed, it would substantially dilute the existing shares, since it would be aimed at saving the business rather than expanding it. The only way to make money in Ambac is to short it till it dies.
MENGIV (< 20) Submitted: 8/01/08 2:45 PM
Well back in May I might have tended to agree with you but with the recent changes this stock is on the march up. I got in at $2.05 and its already returned nearly 100%. The long term, five or more years, I believe will see this stock regain most if not all of its previous price levels. But for the shorter term, one year, this stock should easily top $12 a share.
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