Ambac Financial Group, Inc. (ABK)

priemen (< 20) Submitted: 9/03/08 4:15 PM : Start Price: $8.34 ABK Score: -55.43

I bought the stock first at 25 then more as it went down. My average position is a little above 4.

My rationale is that most of the losses are valuation losses ant actual credit losses. I also believe the hype about the housing market is completely overblown.

The only disaster in the stock was the very dilutive equity offering at $5 share price.

I believe that the company's share price will reach about $25 within 3 years based on a conservative multiple ignoring mark to market gains in the future.

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