Posts for Ticker ‘Ambac’

If Ambac Insiders Bought Shares, Does It Help? (ABK)

Ambac Financial Group, Inc. (NYSE: ABK) did manage to raise its additional $1.5 Billion in new capital as the company tries to maintain its Triple-A ratings.  Ambac priced 185.2 million common shares at $6.75 each and 5 million equity units at $50 each as Ambac tries to maintain its Triple-A ratings at S&P and Moody’s, while Fitch did ultimately lower ratings to AA and has it on review.

But after looking through the form 4 filings in the Edgar database it showed that there were insiders at Ambac who participated in the offering with them buying shares.  From what we tallied up it appears to be more than $600,000.00 on almost 100,000 shares in purchases.These may not be all of the purchases as more form 4 filings may come Monday, but here are some of them showing who acquired how many shares in the offering:

  • Chairman & CEO Michael Callen bought 25,000 shares;
  • Director Thomas C. Theobald bought 20,000 shares;
  • Director Henry D G Wallace bought 10,000 shares;
  • EVP Douglas Renfield-Miller bought 10,000 shares
  • Director Jill Considine bought 10,000 shares;
  • Director David Wallis bought 6,250 shares;
  • SVP Gregg Bienstock bought 6,000 shares;
  • EVP John Uhlein bought 5,000 shares;
  • CFO Sean Leonard bought 1,000 shares.

For whatever it is worth, CEO Michael Callen noted in a CNBC interview that Ambac had ample cash to pay claims for more than the current environment and earnings are assured for two years on its portfolio.  Filings show that new business generated so far in 2008 has been at a standstill.

Insider buying is usually hailed by Wall Street and critics have a hard time in continuing to bash a company when management plunks down its own cash to buy shares.  We don’t want to sound like disappointed brats, but as these were priced at $6.75 this total dollar amount just doesn’t exactly ring out the sounds of a major show of force.  Wanting more and more is unfortunately just the way of Wall Street.  Either way and regardless of the size, it is at least good to see management put more skin in the game.  That’s even more of the case when you consider how painful the game at Ambac has been and how long this road is going to be.

Jon C. Ogg
March 8, 2008

Posted on: March 8, 2008 – 8:47 am in Financial Stocks, Insider Activity, Secondary Offering, , ,

Moody’s Signals It Should Cut Ambac, But Isn’t Cutting It (ABK)

Moody’s is affirming the current ratings and capital ratios at Ambac Financial Group, Inc. (NYSE: ABK), although there is not a downgrade being issued.  Moody’s has noted that Ambac’s capital is currently under its "Aaa" target level and it would review the capital plans as the situation develops.  If the company gets the bailout, it should get to sneak its "Aaa" rating.

We have noted before, as have many others, that this is a mere dance right now that is nothing short of a game to avoid a sudden financial collapse.  It’s almost like the Treasury hiring out counterfeiters to print $1Trillion to put into circulation so that it doesn’t have to officially count the funds as being in the money supply.

We still think some of these mergers will be mandated rather than preferred.  Is there a more appropriate day than Leap Day to put this out?  Maybe April 1.  The good news is that Ambac stock is now up on the day.  Maybe stock buyers are getting to buy stock with that counterfeit money.  We don’t want to see a market crash or a recession that turns into a depression either.  But some serious games are being played in the system right now, and all the players know it.

Jon C. Ogg
February 29, 2008

Posted on: February 29, 2008 – 1:02 pm in Analyst Calls, Financial Stocks, , ,

Bond Insurer Rescue Package From Banks? (MBI, ABK)

Ambac Financial Group Inc. (NYSE: ABK) and MBIA (NYSE: MBI) are both trading higher in pre-market trading this morning.  CNBC squeezed in a report after covering the Yahoo!-Microsoft that there are eight banks that have formed a consortium to rescue the ailing bond insurers.

MBIA is trading up roughly 12% to $17.50 and Ambac is trading up over 15% at $13.50 in pre-market trading.  We noted before how "mergers may be mandated rather than preferred" and this would fall right into that coup and conspiracy.  The counterparty risks are just too severe if one of these were to fail entirely.  Goldman Sachs recently outlined the values of potential packages.

Forming this consortium may be the banks saving their own skin rather than them just coaxing a financial opportunity.

Jon C. Ogg
February 1, 2008 

Posted on: February 1, 2008 – 8:03 am in Banking, Financial Stocks, Mergers and Buy Outs, , , , , ,