Ambac closed at $5.85 today. This was highlighted here Friday morning when I was touting a 300% winner in three days! The next on the list was Ambac!
And Ambac gets to run.
Friday evening I had a nice piece on Ambac, just in case you missed my subtility.
Ambac (ABK 3.79) and MBIA Inc. (MBI 7.67) rallied as the shorts are re-assessing the viability of the monolines.
The only thing we can say with certainty, is that we should have one heck of a short covering rally next week. And it will probably get vicious!
60% in three days! But more is coming! The big story in Wisconsin now is "Who will Brett Favre play for?" My guess? Well, if you want cheap sideline tickets for the Tamba Bay and Green Bay Packer game on September 28, at Raymond James Stadium, you'll now find them unavailable at a reasonable level. But not here! I already picked mine up 36 hours ago!
But what does a "cheesehead" have to do with Ambac? Just ask Connie Lee!
Wisconsin regulators are expected to approve Ambac's plan to create a new AAA rated municipal-bond insurer, the company said today. The business, which wouldn't underwrite the structured finance securities that led to Ambac's losses, ``starts fresh with a clean balance sheet,'' Callen said in the statement.
Callen said later on a conference call with investors that the new business, called Connie Lee, would have a separate board and is likely to be embraced by the municipal-bond market.
I guess the shorts didn't see that coming.
But then again, they're not from Wisconsin!
A vicious rally? I'd say so!