Thursday - March 6, 2008
![]() Dear subscriber, I want to share with you some comments from Eric Rothmann, Senior Financial Services Analyst with Zacks Equity Research, concerning bond insurer Ambac (ABK). "Yesterday, Ambac Financial Group, Inc. (ABK) announced it would sell at least $1.5 billion in stock and convertible securities to help boost capital levels at its main insurance unit, which has been facing potential ratings downgrades. While this move should help to retain its current credit rating, it is abundantly clear that the market was not pleased. "By selling $1.0 billion in new shares (using $10 per share), ABK would substantially dilute its shares outstanding (basically a doubling). "Considering that we are at the beginning of a mortgage meltdown versus the trough, we view the $1.5 billion in additional capital as more of a `Band-aid effect'. "ABK is also attempting to shore up its capital base by suspending new business in the riskiest segment of the market. While capital may improve from this action over time, earnings will be hampered over the near-term. "We rate the shares of ABK a Sell." Zacks Premium subscribers can read Eric's Feb 14 report on ABK at: http://at.zacks.com/?id=4409. Wishing you prosperity, Charles Rotblut, CFA 1. ZACKS RANK BUY STOCKS The Zacks Rank is a powerful short term stock ranking system that has generated a 32% average annual return. Every day on Zacks.com we highlight four new Zacks Rank Buy stocks based on the main schools of investing: Aggressive Growth, Growth & Income, Momentum and Value. ANSYS (ANSS) posted an average surprise of 19.9% over the past four quarters. This year's earnings estimates have risen six cents to $1.36 over the past week. Read the full analysis on ANSS now! L-3 Communications (LLL) upped its dividend by 20% and continues to invest in internal initiatives and acquisitions. Analysts have increased full-year 2008 earnings projections. Read the full analysis on LLL now! Murphy Oil (MUR) reported blistering fourth-quarter results in late January, including a 135% jump in income. The CEO offered positive guidance moving forward. Read the full analysis on MUR now! Fossil (FOSL) surprised on estimates for the fourth-quarter by 10.29% and guided first quarter sales higher by 12% to 14%. Read the full analysis on FOSL now!
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Growth & Income: Figuring the Return on Assets Momentum: Support and Resistance Value: Understanding Price/Earnings-to-Growth (PEG) Aggressive Growth: Measuring a Stock's Volatility through Beta Education Home: Click here.
Orbital Sciences (ORB) The Put/Call Ratio Greater than 1.0 filter highlights this satellite and rocket manufacturer.Read the commentary. Options homepage: Go there now.
Panelists share their thoughts on current stock market volatility. Also discussed is whether we'll see a housing bailout. Listen to his audio here. For more Zacks audio, http://at.zacks.com/?id=4168.
If you enjoy this e-mail newsletter, then please pass it along to a friend. Simply forward them the link below to sign up for their own free subscription. THANKS! http://at.zacks.com/?id=2338 Regards and Happy Investing, Charles Rotblut, CFA p.s. What is the mission for Zacks Profit from the Pros? Click here to find out how we will help you become a more successful investor. Visit /performance for information about the performance numbers displayed in this newsletter Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. To contact us by mail: Zacks Investment Research To unsubscribe from receiving "Profit from the Pros" e-mail newsletter, click here. | |||||||


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