Banking, finance, and taxes
AMBAC Comes Clean & Runs The Gauntlet (ABK, MBI)
Published:
Ambac Financial Group, Inc. (NYSE: ABK) has finally come clean, but this coming clean is so brutal that it will be dirty. Below are some of the summary changes, many of which are substantial:
AMBAC is actually claiming a new book value of $21.00 per share as of December 31, 2007. How many people will now try to use that number as a share price ceiling is as good of a guess as any. Analysts were not surprisingly expecting a profit for the quarter.
Shares closed at $21.14 yesterday and initial pre-market indications had put this around $19.25 to $19.50 in early hours pre-market trading. Shares are actually trading down under $18.00 now. The 52-week high is $96.10. This is actually weighing on other bond insurers and guarantors as MBIA Inc (NYSE: MBI) is indicated down 9%.
Jon C. Ogg
January 16, 2008
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