Ambac Financial Group, Inc. ( ABK ) Ambac Assurance Corporation (Ambac Assurance) today announced that it has received regulatory approval from the Commissioner of Insurance of the State of Wisconsin to capitalize and reactivate Connie Lee Insurance Company (“Connie Lee”), its financial guarantee subsidiary. Connie Lee will conduct business under a new name and will focus on the U.S. municipal and global public purpose financing markets. Ambac Assurance will inject $850 million into Connie Lee which will operate as a separate corporate and legal entity within Ambac Financial Group, Inc. (Ambac). Ambac is seeking to obtain stand-alone triple-A ratings for Connie Lee, and has worked extensively with Moody’s and Standard and Poor’s towards that goal. Connie Lee expects to write new insurance policies no later than the fourth quarter of 2008.
ABK is now trading above $8 in pre market and it bumping up at that $8.11 resistance level that I spoke about weeks ago when it was in the $5's.
So now what? Well, the next resistance level I see would be at $9.35 which is at the 200 day moving average. Keep in mind, this will move lower each day given that horrible past 200 days. This is your next point to watch. If ABK would close over $8.11, use a tight stop.
