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Ambac Bankruptcy Filing Imminent
Game over for another Jim Cramer masterpiece.
- AMBAC HOLDING SEEKS TO RESTRUCTURE MORE THAN $1 BILLION IN DEBT
- AMBAC HOLDING SAID TO PLAN FILING FOR BANKRUPTCY THIS WEEK
Below is Jim Cramer's Ambac note from April 13. Almost as good as his Bear Stearns call.
Give Me Some of That 'Worthless' Ambac
04/13/2010 11:49 AM
I
hate Ambac Financial (ABK - commentary - Trade Now). I believe the
current stub of equity is worthless. The claims are too big and the cash
too small. But so what.
Ouch.
That's painful to write.
Especially, when you consider the Columnist Conversation tune of Tim
Collins, and the excellent work by Andrew Wessel at JP Morgan backing up
that analysis.
But it doesn't matter. You could argue that none
of these insurers are technically solvent: Radian (RDN - commentary -
Trade Now), PMI (PMI - commentary - Trade Now), MGIC Investment (MTG -
commentary - Trade Now), MBIA (MBI - commentary - Trade Now). It hasn't
meant a thing.
MGIC has rallied 400% during its extended period
of "worthlessness." I want some of that worthlessness. Radian's up 600%
during its "worthless" period. I would have liked a piece of that
worthlessness. How about grabbing a hunk of the 800% rally in the
"worthless" PMI? Wouldn't that have been delicious?
Do you hold your nose and buy ABK because of those rallies? I believe, oddly, yes. Now,
there is simply no percentage in admitting you would ever recommend a
worthless security. But this is a game of performance, not a game of
valuation. There are plenty of genuinely worthless stocks that have gone
up huge. There are tons of cases where gigantically worthless stocks --
almost every dotcom circa 1999-2000 -- gave you great returns.
The purists out there have spurned these points. I could care less about purity. I could care less that someone might be able to say Cramer likes worthlessness.
But the !@#$% animal spirits have it going, and a worthless stock can
be worth something if it moves up that much and starts offering equity
or bonds against it.
Again, I hate these situations. But they are
real. They are happening. They have happened. And this is one of them
that I feel is destined to happen again.
Sorry.
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QE 4 is now in the bag... time for a stick save...
Remember, I'm the one who said QE $7 trillion two months before anyone else (quite apart from stealth monetization, a term I coined).
Well, dahlings, know what the figure now is? A gruesome $21 trillion. As HM would say, "Awful!"
And by the bye, have you noticed that Evvie Pritchard has gone quite off his dolly? Praising America and saying we have positively oodles of economic depth. What next? Does he call himself Mrs. Bates and tear open your shower curtain?
By the way, the digiclerks here in SV are still typing away and sucking up the java. When WILL they get the sack? Because, of course, they don't have the sack.
3 years ago, I never even used the word trillion. I don't think many people actually ever did before that.
Now we talk trillions like we order 1$ burgers at Mcdonalds....
I want a McTrillion Mac. That would be tasty. :)
I'm thinking of phoning the Fed and saying, "Could you wire me a spare billion. I misplaced mine. It was on my night table a minute ago."
Hookers always take all the money on the night table!!
Didn't your parents teach you anything?!
Damn, I knew that chick's purse looked a little heavy when she left the other night.
....classic. LOL.
3 years ago this news would've sent the DOW 400 points down.
So true squarepants, so true!
Oooooo........quad-drillion sounds so intoxicating!
You know. "How much for that 10 oz nugget?"
a quad-drillion, dahling."
I believe Monty Guild and Jim Sinclair were saying 20+ Trillion would be what it would come to 2-3 years ago...
But hey, who is counting anymore?
Cramer wanted to be the Secretary of the Treasury. Would that have really been worse than eraser head Geithner?
+1 lol
I'm visualizing Cramer's sound machine in a Congressional hearing...could it be any more insane than Steve Colbert appearing?
DONE! Bankruptcy filed.
Ambac Files For Bankruptcy (NYT Nov. 8, 2010)
Ambac said in its filing, made in Manhattan federal bankruptcy court, that it has almost $1.7 billion worth of liabilities. It isn’t immediately clear whether the company had reached a pact with creditors over a “prepackaged” bankruptcy plan, which would shorten its time in Chapter 11 protection.
http://dealbook.nytimes.com/2010/11/08/ambac-files-for-bankruptcy/?src=b...
Who cares. The FED will bail them out, and offer them free hookers and coke with freshly printed money.
The FED will bail out everybody. The FED will bail out the USA bankruptcy, the Europe bankruptcy, the world bankruptcy. The FED will print 100,000,000,000 trillion dollars if it needs to be. The FED will save us. The FED is our master, our God.
Hurrah for the almighty FED, the horn of plenty, the prophet of our illumination!
I always wanted to swim in bank notes, like Uncle Scrooge. Now I will finally have the chance.
If you have the UTTER impertinence to be referring to the United States, please spel it prapurly:
Uncle Screwge.
A dollar bill contains about 4 million bacteria. I don't think you would be clean.
Uncle Scrooge liked coins - presumably in the day they were silver and nickel and real PM's. His vaults and fortune were made up almost entirely of coins. Smart duck.
Just sayin'... :)
A beautiful and bountiful cornucopia of cash for Turkey Day?
Yea... I get to be a millionaire !!
"stick saves" are for stupid TD PR...ignore. we have bigger problems ahead. duh...>TD knows this also. Unless he/she/it bans me again....duh.
Only DOWN 77.47% ... since Cramer's piece came out ...
Reminded of the scene from Dumb and Dumber ... director rework in November 2010 ...
Cramer: What do you think the chances are of a stock like you going up 200% in 2010?
Ambac: Well, Cramer, that's difficult to say. I mean, we don't really (make any money) ...
Cramer: Hit me with it! Just give it to me straight! I came a long way just to see you, baby. The least you can do is level with me. What are my chances?
Ambac: Not good.
Cramer: You mean, not good like one out of a hundred?
Ambac: I'd say more like one out of a million.
[pause]
Cramer: So you're telling me there's a chance... *YEAH!*
attaboy jimbo, you topticked the fucking thing
Its all good. The Virtual Fed is going to print up virtual money and the virtual Taxpayer will virtually bail them out
Cramer was misquoted. Right Jimmy?
The money must have all moved into PCLN. Look at her run AH! Wow!
They junk you because they hate making money.
Tyler, on cnbc (I know, I'm sorry...) they are talking about ETF's ticking time bombs.
can't you do a analyze?
John Stewart is working up his next Cramer piece as we speak.
House of Pain...
But this is a game of performance, not a game of valuation.
OMFG, did Cramer actually say that??! What a clown. Somebody is going to try and sue him for his terrible investment advice, one day.
someone should just sue him for wasting oxygen, carbon credits blowhole!
I think that is in the part of the Company that was spun off by the Wisconsin Insurance Commisioner, not the Main Company.
Very confusing since they split the Company into 2 parts. One with all of the CDO's and one with the Bond Insurance Business.
Cramer is a vaudeville/circus act...
Bring out the clowns and the funny car
FREE investment advice..whoppeeee, pop, bang, whiz
Wow, I guess those muni's we own insured by AMBAC might drop in price even more and yield 1.4% instead of .25% :)
Ambac Financial is the stock traded. I think that the Holding Company is the one spun off with the CDO's in it. I think there needs to be more clarity on if this is the Main Company or the Spun off Company holding the CDO, CDS risk. Earnings tomorrow. The news reporters always like to trash the stock before possible good news.
I started scrolling down ZH main page... And this post was right next to the most annoying of ads...
"Profit with Cramer"
And a picture of the greezy Ass-Hat Clown himself...
LLoyd's paying the ad bill sos booyah can haunt these and all other pages that continuously and mercilessly mock them both. That's a lot of coin.
Ha! The only way to cut into Lloyd's Bitchez Bonus...
Make him answer his hate mail...
If you do not wanna see ads:
http://www.mvps.org/winhelp2002/hosts2.htm
Follow the directions, ads go away!
Amazing it took this long. I wonder when MBIA finally goes under?
probably be another year before they are forced to file.
We don't need the Fed to show us we are in deep shit. As long as that asshole pollutes the airwaves, we know that CNBC is a criminal enterprise and that the American people are the biggest fattest dumb-asses to walk the face of the earth.
A serious sign that America's economy has healed, and that the markets are actually safe for investment would be the demise of that sickening, whore infested station.
At what point does money officially become a candidate for toilet paper?
Will the next trillion printed come in 2 ply.
2 ply would give the dollar some inherent value. They wouldn't go that far.
I love the headline that came over my wire. ABK MAY file for Bankruptcy with the Holding Co. They already said that. But what is not clear is if it is the holding Company or the Main Company.
I'm thinking the BK will affect both, and the more toxic garbage sub-entity will be sold off and the remaining less toxic will hit the bondholders with a haircut to get into net + income territory.
Or, they'll spin off the less toxic stuff, and haircut the bondholders with the remaining more toxic crap. It really just depends on who has more influence.
I'm voting no BK though, I think it'll just get bought out entirely.
Your vote lost - they just filed.
Finally.
Just die bitch. Just die.
(Oops, I sound like a Gator football player)
Mr Galt:
Sir, I thoroughly enjoyed your blovel about the dollah. My question is where are we on the timeline? The frog's eyes seem to be getting a little buggy as the water is gettin' warm, no? You know it will be "all of a sudden", but is it now? 6 months? Can gets kicked down the road 6 years?
Whenever it starts, you'll know it.
Government "solution" incoming. They're set to release 3Q earnings tomorrow after close, BK will probably be officially announced at that time. We're talking hundreds of billions in net par exposure here, including stuff that's actually important, like:
AAC DUNKIN DONUTS BBB- "N/A" 1,275,005 1,086,905They better not do anything that fucks with my donuts.
Some other fun stuff: 30.95 billion in net par MBS exposure, including fun stuff like 3.013 billion in Wachovia HELOCs, 6.3 billion in various Countrywide garbage (2.7 billion HELOC, 2 billion subprime), 1.98 in various Lehman monstrosities, 1.5 in RBS NegAm's, etc.
It's so, so fugly. Should be interesting to see who picks up the book here. One candidate that wouldn't shock me: AIG. All the benefits of a government takeover, with none of the downside of attempting to sell a bailout. "It's not a bailout, AIG is a private company that saw this book of business as having a lot of long-term value going forward". God, I hope I'm not right on this, and shame on me for potentially giving somebody an idea.
Thanks for the info. Even if it's the end of the world, this shit is hilarious.
Don't forget the forty eleven layers of derivatives based on this crap.
Another slow news day, eh Tyler? Thanks for the effort. The game's afoot.
So what? Tomorrow the sun rises and nobody cares, again and again.
Why don't the people turn on Cramer?
I do it when I want to throw shoes at the tv.
How, other than sheer dumb luck, Cramer actually made any money in the past is beyond all comprehension.
I am realitybiter.
We are all BUCK_F*CKED!
Fuck Cramer. I haven't watched him since he was last seen with Angelo Mozilo giving him a handy.
At this point Tyler, Cramer's ability to pick ultra wipe-outs for those misguided enough to listen is approaching the level of a law.
IE:If Cramer recommends a stock, it will lose money.
And by restructure they mean make it better!
The stock market is the new Las Vegas in our virtual world... If they could link to craigslist for hookers, they'd just need to incorporate alcohol and it will be a complete takeover.
Not verified, copy/paste ZH post by some one called "no one":
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