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Ambac (ABK -18.2%) shares pull a stunning reversal as JPMorgan Chase (JPM) analysts say they...

Ambac (ABK -18.2%) shares pull a stunning reversal as JPMorgan Chase (JPM) analysts say they have "no value." To pay claims from mortgage guarantees, it will issue a $2B secured note and additional surplus notes that will rank ahead of common shareholders and be “materially dilutive,” the analysts say.
Comments (19)
  • AIG doesn't have any value either. What they do have is deals for the banks.

     

    You don't think the analysts are influenced by the I-bankers? Think again.
    13 Apr 2010, 03:44 PM Reply Like
  • ABK has been a long and short widow maker the last few days.

     

    I know there is money in a stock like that but for me it is way too dangerous to short because of its overcrowded and way too dangerous to go long because of its poor fundamentals.
    13 Apr 2010, 03:49 PM Reply Like
  • file this one under the best investments are sometimes the ones never made.
    13 Apr 2010, 03:51 PM Reply Like
  • How much you wanna bet it was driven up by the same crooks to draw out the shorts first. Money's made so now "it's worthless".
    13 Apr 2010, 04:00 PM Reply Like
  • And you need JPM to tell you this? And if JPM would have came out and said ABK common is worth 10 billion everyone would pile in and buy? My goodness does anyone do their own research or do they just listen to what the 'analyst' tell them to do. If most weren't lazy they could come up with better research then most GS or JPM analyst. Anyone who tells me about the EMH I just want to laugh at them.
    13 Apr 2010, 04:00 PM Reply Like
  • This is the exact thought process (I use the word "thought" liberally) of most the buy, buy, buy lemmings you see floating around. Don't bother to scratch the surface, just do what's said by the "pros".
    13 Apr 2010, 04:06 PM Reply Like
  • Stay away from it just like you would the big $10 slot machine at the entrance of a casino.
    13 Apr 2010, 04:06 PM Reply Like
  • Let's see. They're teetering on bankruptcy, cannot pay their obligations, assets are be seized - WOW, what a great call and made with such clarity. Boy, they sure earned their paycheck today. Good job, guys.
    13 Apr 2010, 04:15 PM Reply Like
  • JP Morgan stated this stock is "virtually worthless"

     

    Day traders like myself fueled this boneheaded stock all the way to $3.39 and then dumped it

     

    For anyone who bought it over 250% gains ($1.78), you should really have someone else do your investing for you

     

    I'm still laughing at how so many people bought into this toliet bowl and kept it.....

     

    I made $4820.00 day trading this junk stock. Think I'll stay in Mexico another week and celebrate.....

     

    Day Traders controlled this stock from almost the beginning and took your cash. Keep up the good work.

     

    Regards,

     

    NuclearChicken
    13 Apr 2010, 04:36 PM Reply Like
  • lol, Mr. Dimon (I mean "NuclearChicken"...wink, wink). Enjoy Mexico!
    13 Apr 2010, 04:40 PM Reply Like
  • "Ambac (ABK -18.2%) shares pull a stunning reversal as JPMorgan Chase (JPM) analysts say they have 'no value.'"

     

    And they waited until today to tell me?
    13 Apr 2010, 05:08 PM Reply Like
  • Hey Market, you a day trader? I'm with you on this - boneheads all over investing in this crap....

     

    There had to be a lot of people buying on margin, using their home equity line of credit and selling their wife's jewelry for this one

     

    Oh well, maybe this will teach them a lesson....

     

    Be aware of day traders inflating the price, because that's exactly what happened. I have $4820.00 of those chump's money to prove it....

     

    Go Day Traders............
    13 Apr 2010, 05:10 PM Reply Like
  • yes I is. :) power to the little people
    13 Apr 2010, 05:12 PM Reply Like
  • How much you make off this one?

     

    You got out, right?

     

    I love taking that money from fools who don't know anything about how the system works
    13 Apr 2010, 05:42 PM Reply Like
  • The JP Morgan guy was using year end 2009 data which shows negative book value of about $8/share so the shares WERE worthless. However he fails to mention that three weeks ago the Wisconsin regulator took over $64Billion of Ambac's most toxic assets and firewalled them away from the otehr parts of Ambac effectively creating a goodco and badco (but better, since the commutations with counterparties will be forced by the state regulator and not Ambac..all with court approval). at a cost of $2.6 Cash plus longer term notes for $2B. (Today Ambac has over $9 billion in their bonfd portfolio and a new lifeline, which is why the stock is up so much. Depending on the settlement of all future claims the book value is likely between +$3B ($10.40/ share) and zero.

     

    Also there is a high probability that the commutations work by Rangemark will be hugely successful, so much so that other insurers are hiring Rangemark to represent their interests.

     

    Also I think there is litigation between JPM and ABK so I would be suspect of anything negative from JPM.
    13 Apr 2010, 05:17 PM Reply Like
  • There's a turnaround ongoing, we will see higher prices soon
    14 Apr 2010, 04:57 AM Reply Like
  • A comeback?

     

    Ok, put that cash on the table and watch somebody swipe it....

     

    ABK was up almost 30% in early morning trading and now at 9AM CST, its down to a 10% gain

     

    Fellow, if you got sucked into the slide on 4/13, be smart about it and accept the loss. The smartest investors will realize that and pull out

     

    ABK is virtually worthless - it has no equity in it and the company has stated publicly twice that it may need to file for Chapter 11
    14 Apr 2010, 10:07 AM Reply Like
  • This stock will hit $5 in next two weeks and that's the fact. The insiders has bought more than 164 million shares from the last 3 days. I know the stock from past 4 years, now is the time. It's worth keeping and i am having 36,000 shares. GOOD LUCK!
    14 Apr 2010, 04:25 PM Reply Like
  • You own 36,000 shares of nothing - ABK has no equity which means that it has no value

     

    The company has stated publicly on two different ocassions that it was near insolvency and bankruptcy was looming over it. Are you seriously that naive and going to wait until they formally declare it?

     

    The company is surviving on a 572 million tax refund it received from the government. That's it. The company has not made a profit - the only way out of this situation is to magically start making a considerable profit or to be taken over. Neither is likely at this point. There have been some internet posts about a potential takeover but that has only been to fuel the stock price.

     

    Unless you're a day trader, why would you go long on a company that has no value in it? You're going to be waiting for eternity to think that this toliet bowl stock will be acquired from a giant in the industry.

     

    Are you really going to sit on those 36,000 shares and watch day trader's take your money? Don't be an idiot. Day traders like myself have fueled this toliet bowl stock and are waiting for the shares to rise again to turn around and dump them. That's the only thing inflating the purchase price.

     

    It already happened once - went from being 50% up in one day to being down 28% at market close. Let's see - a 78% stock swing - doesn't that imply anything to you, or are you that stupid to realize it?

     

    You're a day trader's dream big guy, keep them......
    15 Apr 2010, 06:10 AM Reply Like
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