Gary McCamey

The Real Risk: Ambac Loses its AAA Rating

I"m not real familiar with the market business, but in an article written by Jim Cramer about two weeks ago he stated: "I pick AMBAC as the stock of the year in 2008". Does this mean he thinks it is a good opportunity for investors to take a risk, small risk according to the article, and make some really good profits for 2008? I noticed the high in the past 52 weeks for AMBAC was $96. (Give or take) If AMBAC does turn out to be the stock of the year in 2008, and it has a potential of $50. to $75./share, then instead of running and screaming, "The Sky is Falling", investors should take some of the money they have put into their old socks, baby powered it and buy as many AMBAC shares as they could risk losing on a small risk investment. I"ve seen people bet $1,000. on a horse that paid 2 to 1 odds, and not bat an eye when that old horse came in last. If AMBAC got up to it's old price, then it'd pay almost 10 to 1, and if it just gets to half it's value before the fall, then it's 5 to 1 to win big. Like the article stated, if AMBAC fails, then the USA will likely fall to. I don't think Uncle Sam will let that happen. Tomorrow I'll scrape up some pennies and try to buy 1,000 shares of AMBAC at $12./share. Gee, I stand a chance of making $48,000. on that $12,000. investment. We poor guys who can't buy a million shares at one time don't get a chance to make $48,000. in one year, not very often. Considering Uncle Sam is on my side, I think it's a little risk, but a little risk well worth taking. Mr. Cramer I hope you are right by picking AMBAC to be stock of the year, 2008. I'll know around Christmas time this year. The skys not falling and a lot of people are going to make a lot of money off Ambac. Captain Gary