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|Subject: Re: AMBAC 5.95% Debenture Maturity 2/28/2103||Date: 12/21/2012 2:51 PM|
|Author: joelcorley||Number: 34576 of 35222|
You wrote, Interesting how a system artifact can become the new emotional stop loss price.
Actually I'd argue that any price over the projected BK recovery price range is a pretty good price. So I would probably accept less than $5/share if it were me just so I recover the principal sooner rather than later.
In fact if you think the BK could drag out, you could make an argument for accepting less than the $4.40/share I mentioned. Remember, $4.40 was the upper limit. The issue might be worth as little as $2.85, so there is certainly a case to be made for accepting a price as low as that if you have a better use for the money today or if you fear these estimates are overly optimistic.
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