Ambac Financial Swings to 3rd-Quarter Profit on Lower RMBS Losses By Melodie Warner
Ambac Financial Group Inc. (ABKFQ) swung to a third-quarter profit as lower estimated losses for residential mortgage backed securities helped to offset a decline in net investment income. Originally an insurer of municipal bonds, Ambac sold guarantees on billions of dollars of mortgage-backed securities and collateralized debt obligations. When the housing meltdown hit, many of these securities turned toxic, leaving Ambac with heavy losses. Ambac's reorganization plan won court approval in March, but the company still doesn't know when it will be able to emerge from bankruptcy. Ambac reported a profit of $157.5 million, or 52 cents a share[i], compared with a loss of $75.5 million, or 25 cents a share, a year earlier. Net premiums earned rose 11% to $113.1 million, while net investment income fell 7.3% to $84.1 million. Losses and loss expenses were a net benefit of $18.7 million, reflecting lower estimated losses for first-lien and second-lien residential mortgage-backed securities. Last year's losses and loss expenses were a net benefit of $60.2 million. Shares were recently trading 3.2% lower at two cents. The stock is down 7% so far this year.
Write to Melodie Warner at melodie.warner@dowjones.com
(END) Dow Jones Newswires November 14, 2012 09:53 ET (14:53 GMT) Copyright (c) 2012 Dow Jones & Company, Inc.DN201211140095112012-11-14 14:53:00.0005EQ2OL29UIVTV139VUO34P347KDJNF
ABKFQ Monthly Chart.......this Months Candle is Busting through the Upper Bollinger Band.......
Last Month ABKFQ closed right @ MA(20)/Middle BB resistance........ABKFQ has been in a heavy downtrend for 3 years........the Lower BB has been support & the Middle BB has been resistance.......
The March move above the Middle BB is significant.........ABKFQ hasn't closed above MA(20) for the month since April 2010......going on 3 years......Talk about a Significant Technical Development.......
Once ABKFQ closes above the Middle BB for the month a new uptrend begins.......& when ABKFQ closes above Middle BB support the following month the new uptrend will be confirmed........
Huge Technical Development for ABKFQ......HUGE!.......there will be resistance @ 0.20......but the next major moving average resistance level on the Monthly chart is MA(50) @ 0.4303.....
Remember, this is a Monthly Chart......the candle is not set & finalized until April 1st........the pattern can change, but @ this pont the Monthly chart looks very bullish.......
Fast Sto @ 95.57......temporarily Overbought.......Full Sto @ 45.55......a lot of room to run.......RSI @ 29.87......been riding under 30 Oversold level for years.....literally....oversold for years......
ABKFQ is ready to cross 30 on RSI.......Major Technical Development......ABKFQ on starting a new Uptrend a becoming a Major winner(even more than now) radar........$$$
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