I think we all knew what was coming with Ambac. The company has recently filed for chapter 11, and claims the IRS is ruining their bankruptcy by claiming $700 million in tax refunds. If the IRS is successful, Ambac claims they will not emerge from bankruptcy. Shares of ABK have traded as high $3 this year, and $1 more recently. However, ABK is a very risky penny stock and only should have been traded with the consult of a registered investment advisor.
I made a 270% profit trading ABK earlier in the year, purely a momentum trade. The stock has just been to volatile for my trading preference. I commented on the stock more recently and determined that only extreme risk takers should be considering ABK, and only with the advice of a registered investment adviser.
Pennystocks are risky, and any investing should be done with the advice of a registered investments advisor!