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Monday, September 22, 2008

ABK Ambac Stock 9/22/08 - Moody's threatens to Downgrade

Shares of Ambac Financial Group ( ABK ) plunged 42 percent in heavy volume Friday, a day after Moody's said it might downgrade the bond insurer's ratings. This morning in pre market trading, ABK is set to $3.30...or another 10%

After markets closed on Friday, Ambac put out a statement saying it would suspend its $50 million stock buyback plan and postpone an $850 million contribution to Connie Lee, its new financial-guarantee subsidiary. Ambac also said any potential downgrade would pressure its business in the near term.

Keep this stock on your radars.......