Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
Editor's Note: Ambac shares were up again on Wednesday on no additional news.
What: Shares of Ambac Financial
So What: Earlier this year, the Wisconsin Office of the Commissioner of Insurance (OCI) set aside certain liabilities of Ambac's Wisconsin-based Ambac Assurance because it became increasingly clear that the company was going to struggle to pay its policyholders. The plan from the OCI is one more step toward Ambac sorting out its messy situation.
Now What: It has been a heady week for Ambac, and shares have risen close to 50% since the beginning of last week. Ambac's situation is still pretty dire, though, and regulators' primary concern is making sure that policy-holders are made whole, not that Ambac itself will avoid bankruptcy protection or survive at all. At this point, shares of Ambac are a gamble -- and likely a bad one -- so prudent investors are best off steering clear in favor of less ulcer-inducing fare.
Interested in more info on Ambac? Add it to your watchlist by clicking here.
Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.
Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his Motley Fool CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policyassures you no Wookiees were harmed in the making of this article.