Ambac Financial Group Inc (AMBC)

[FAILURE TO DELIVER]

ABK bottomed again?

I've always been a fan of beat up big board stocks, and this one has some good potential.Once a stock has been beat up,I like to see how it reacts to the general market.

Notice how ABK rallied on Friday into the close with the DOW beat down 220 points.
Once a stock stops dropping in unison with the general market,can be a good indicator that much of the down side is already priced in.

With the price bouncing off the $1.90 mark, and if this price holds and heads up,would indicate the first higher low from the $1.74 PPS bottom.

If there's any spark left in the market, we should see support in the DOW 11700 area.

I bought 12K shares into the close on Friday at $2.00 because I liked the way the stock was fighting the down market.I still own 6K shares from a previous purchase at $2.04.

ABK still has a huge short interest that has increased again since last month.
http://www.nasdaq.com/aspxcontent/shortinterests.aspx?mode=&kind=shortint&timeframe=&intraday=&charttype=&splits=&earnings=&movingaverage=&lowerstudy=&comparison=&index=&symbol=ABK&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&FormType=&mkttype=&pathname=&page=short&selected=ABK

ABK needs to show some strength to force some short covering,and if that does happen,it could move real fast.

I'm deep into this one now, but the risk reward here looks too good to pass up right now.
Of course,I could always get my rear end shot off too,but if you never take a risk,you can't hope for a significant profit.

FTD