Wednesday, July 2, 2008 6 comments ++[ CLICK TO COMMENT ]++

Ambac Has Fallen To Penny Stock Status :(

Never a good sight when one of your holdings falls into penny-stock status. WSJ Marketbeat had this to say:

On Wednesday morning, shares of Ambac Financial Group slumped to a new record low of $1.04. That prompted the New York Stock Exchange to impose an “operational trading halt” on the stock, which means Ambac’s shares will stop trading on the exchange floor for the time being.

The shares will trade on electronic exchanges such as NYSE Arca, and aren’t eligible to return to the exchange floor until they move back above $1.10 and remain there for a whole day. They were recently trading at $1.11.

Over the past year Ambac’s shares have dropped from $88.20 to current levels as worries linger about the company’s ability to meet its financial guarantees and other obligations. A month ago the shares were at $3.02. Ambac’s market capitalization is now around $300 million, versus $9 billion last July.


6 Response to Ambac Has Fallen To Penny Stock Status :(

July 2, 2008 at 2:51 PM

Fret not. There is nothing that a 1-for-10 reverse stock split won't cure. At its current market cap, either Marty or Bill can buy this company outright.

July 2, 2008 at 4:56 PM

Reverse splits are the kiss of death... I'd rather that Ambac get delisted and moved to pink sheets than reverse-split (but I would bet management would reverse-split)...

July 2, 2008 at 5:23 PM

LESSON HERE: Never follow a guru.

July 2, 2008 at 6:18 PM

I guess the irony is lost on some people....In case it's not obvious based on my previous posts, I had thought ABK and MBI were lost causes ten dollars ago.

but if they _ARE_ going to do a reverse split, I'd recommend a 100-to-1 split -- a $100 stock stocks look more impressive than a $10 stock.

Hint: previous paragraph is a joke.

July 2, 2008 at 11:27 PM

0 for 3 for Marty Whitman
(MBIA, Radian, Ambak)

August 15, 2008 at 3:07 PM

I guess it was too soon to tell when you wrote this post.

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