Comments for 0 at http://boombustblog.com , comment 1 to 6 out of 6 comments http://boombustblog.com Thu, 08 Jan 2009 07:54:17 +0100 FeedCreator 1.7.2 http://boombustblog.com/index.php?option=com_myblog&show=Ambac-does-it-again.html&Itemid=92#comment-1073 Answer: a lot higher! - Reggie Middleton Tue, 29 Apr 2008 06:25:01 +0100 http://boombustblog.com/index.php?option=com_myblog&show=Ambac-does-it-again.html&Itemid=92#comment-1072 On the other hand you may take another look at their business model. Equity is just a call option on assets, as stockholders are getting everything for the price of their stock. Their business model is called "Not seeing black swan". As long as black swan does not come, stockholders are keeping their dividents. In case black swan comes, debt holders and policyholders are paying the bill. I wonder what would be premiums under Lloyds scheme (names are collecting profits, but guaranty with their personal wealth)? - Klemen Tue, 29 Apr 2008 02:06:25 +0100 http://boombustblog.com/index.php?option=com_myblog&show=Ambac-does-it-again.html&Itemid=92#comment-1050 I think they will be forced to protect their muni risks, one way or the other. They have already failed, due to the long term nature of their risks. - Reggie Middleton Fri, 25 Apr 2008 09:31:13 +0100 http://boombustblog.com/index.php?option=com_myblog&show=Ambac-does-it-again.html&Itemid=92#comment-1049 Hey Reggie? Will the government let these guys fail? I have a feeling that they will be saved somehow. What do you think? - Mo Fri, 25 Apr 2008 01:03:56 +0100 http://boombustblog.com/index.php?option=com_myblog&show=Ambac-does-it-again.html&Itemid=92#comment-1039 Reggie, you deserve all the accolades in the world. I'd say "Great call" but a "stock picking call" has connotations of being flippant, off-the-cuff, and worthless. Cramer makes calls. So great analysis, great research, and commendations for putting your thesis out there for the world to see. Glad you could ride the monolines down from 60 and thanks for letting your readers jump on the train as well. - needles Wed, 23 Apr 2008 14:54:59 +0100 http://boombustblog.com/index.php?option=com_myblog&show=Ambac-does-it-again.html&Itemid=92#comment-1038 Reggie, spot on. :)I looked at Ambac's balance sheet as I always look at the primary statements, not the "management blurb"! They have shareholders equity of $1.3bn or over $4.5 per share yet they are carrying a $4.6bn deferred tax asset in their balance sheet. Strip this out (they need to make money to use this) and they have a hole of $3.3bn... I 100% agree that these are "unrealized losses" but who, who would lend them money in this market? The only people are the people who stand the most to lose. DO I hear the FED coming to the rescue here as well????? hmmm Rgds Mark F - Mark Fitzpatrick Wed, 23 Apr 2008 12:02:32 +0100