Ambac’s Phoenix Approach (ABK)

Posted in pre-market 
April 9th, 2010

Ambac Financial Group, Inc. (NYSE: ABK) soared last night in after-hours trading by about 50%.  The troubled financial guaranty company said that its Q4 net income was $558.1M, or $1.93 a share, up from a huge loss a year ago, driven by a $472 million tax benefit and from lower loss expenses.  Its total net loss and loss expenses were $385.4 million in Q4.  This looks like an example of some financial wizardry but the share trading speaks for itself.  Last night’s gains are even stretched further this morning.  At 8:38 AM EST we have seen 8.3 million shares trade hands and the stock is up 76% at $1.13.  The closing price yesterday was $0.64 and the 52-week range is $0.51 to $2.09.

-JON OGG

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