What you think about "ABK" stock?

Question

What you think about "ABK" stock?

Answer 1

Ambac had been trading at 6 levels only 3 months back . This has been constantly hammered in the last few months.  Right now there might be opportunities for buying - but since markets are under a downturn you can wait further and buy it at a later stage

Answer 2

Personally, I wouldn't purchase it right now, but I'm a bit on the conservative side.  I personally think that there's a 50/50 chance that it will not survive more than a year, due to future ratings cuts which will effectively end its business.  If it fails, stock will be worthless.  If it manages to survive, the stock will probably take off a bit.  Good luck.

Answer 3

I own ambac and cannot afford to buy any more.

It is trading around 1.35 right now.  I bought it @ 3.40.

Long term it might come back but it has some issues.

They offer bond insurance (If an underwriter fails, they have to cover)

Their credit ratings were affected and the business has issues getting new business going forward.

There are alot of institutional investors that own both this and MBIA so you do have some well heeled company with this purchase, but I would look at it as a bit of a gamble considering present credit markets.

Good Luck!

Answer 4

Stay the h**l away.  I wouldn't buy any stock less than $3 either.  Unless I planned on selling the same day.