Ambac turns lower after earnings; proxy contest on tap

• Q1 operating earnings of $218.1M or $.482 per share vs. $481M and $10.64 in Q4.
• Adjusted book value per share of $29.10 up from $24.78 three months earlier.
• The company in Q1 bought back $512M in distressed obligations - the highest quarterly amount since emerging from bankruptcy three years ago. Included were $325M of insured RMBS and $168M of insured Local Media Insight bonds.
• The company also commuted $387M net par of its student loan exposure, bringing exposure down to $1.7B.
• The company estimates an IRR of 8.7% from these various moves.
• The annual meeting at which a board slate from Canyon Capital is challenging is next week.
• BTIG's Mark Palmer lauds the company's "self-help" in creating value, but retains his Neutral rating on the stock.
• AMBC -1.9% to $15.73.