Cramer: "Ambac Needs a Foolish Fund to Stay Alive"
Enviado: 23/4/2008 14:00"Ambac Needs a Foolish Fund to Stay Alive"
By Jim Cramer
RealMoney.com Columnist
4/23/2008 8:20 AM EDT
"Ambac (ABK - commentary - Cramer's Take)? How do they stay alive? I just don't see it. Who the heck is going to put more money into this thing?
The answer of course, is that there is a hedge fund/mutual fund sucker born every minute.
These financials that recapped before are often recapping again. The outrageous capital raise of Merrill Lynch (MER - commentary - Cramer's Take) yesterday after they pretty much assured that there wouldn't be one -- although they hedged by saying it was equity that wouldn't be raised, and they didn't -- is typical. So is National City (NCC - commentary - Cramer's Take).
And now it will be Ambac again. That's how bad that quarter was.
One day the capital will run out for these darn financials which are now only 11% of the S&P -- down from 20%!
This one could be the test. And I sure wouldn't give them my money. "
(in www.realmoney.com)
By Jim Cramer
RealMoney.com Columnist
4/23/2008 8:20 AM EDT
"Ambac (ABK - commentary - Cramer's Take)? How do they stay alive? I just don't see it. Who the heck is going to put more money into this thing?
The answer of course, is that there is a hedge fund/mutual fund sucker born every minute.
These financials that recapped before are often recapping again. The outrageous capital raise of Merrill Lynch (MER - commentary - Cramer's Take) yesterday after they pretty much assured that there wouldn't be one -- although they hedged by saying it was equity that wouldn't be raised, and they didn't -- is typical. So is National City (NCC - commentary - Cramer's Take).
And now it will be Ambac again. That's how bad that quarter was.
One day the capital will run out for these darn financials which are now only 11% of the S&P -- down from 20%!
This one could be the test. And I sure wouldn't give them my money. "
(in www.realmoney.com)