Check Out Ambac (ABK) Preferreds - Voice of the People
Zacks' Voice of the People Highlights user LesGetRich: "Check Out Ambac (ABK) Preferreds" from the People & Picks community.
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Check Out Ambac (ABK) Preferreds
The company showed a profit last quarter and looks like it's on the rebound. Check out the preferred Ambac shares ([AKT], [AKF], ABK.prZ and [GJW]) for good income and growth potential.
GJW has currently suspended dividends but the stock is cumulative and accrued interest will be paid when dividends resume - Yield is currently over 70%. Ambac can't pay dividends on common shares until they pay all dividends due on GJW.
Note that the Z series preferreds have a mandatory conversion to common shares on 5/17/11. In the meantime you'll collect 28% + dividend which is factored into the current share price (i.e. you're betting on the price of the common shares increasing).
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