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Ambac Financial Group, Inc. (NYSE: ABK) had been up over 6% but is now just up 2.5% at $0.80.  The troubled company has a debt for equity exchange announced with certain holders of Ambac’s 9⅜% debentures due August 2011 where it will issue 5,036,068 common shares in exchange for $8.5 million in aggregate principal amount of debt to the bondholders. There will now be 293,420,336 common shares outstanding.

Amylin Pharmaceuticals, Inc. (NASDAQ: AMLN) is up 12% at $18.53 on over 400K shares this morning after Roche’s diabetes drug faces an FDA delay of 12 to 18 months.

NMT Medical Inc. (NASDAQ: NMTI) crashed yesterday with a drop late in the day from over $2.60 to $0.56 at the close after announcing that its stroke therapy failed.  We are seeing a gain this morning of 19%, but it is still only at $0.67.

Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are trying to catch a bounce.  We show FRE shares up almost 5% at $0.54 and FNM shares up almost 1% just under the $0.43 mark.

BP plc (NYSE: BP) is up 3% at $32.66 on fairly active trading in the pre-market.  This is despite cuts by Moody’s and two analysts.  Societe Generale reportedly raised the rating to Buy.

Walgreens and CVS have decided to end their dispute over prescriptions.  Shares of CVS Caremark Corporation (NYSE: CVS) are up 4.7% at $33.36 and Walgreen Co. (NYSE: WAG) is up 8.5% at $31.75.

Kaman Corporation (NASDAQ: KAMN) lowered guidance after the close on delays.  Shares are indicated down 7% at $23.00 although the volume here and the normal trading volume may keep this from being seen too much.

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JON C. OGG