Ambac Authorizes $50 Million Stock Repurchase Program

Investors in Ambac Financial have watched their investment fall off of a cliff in the past year, amid constant speculation about the bond insurer's solvency.  What does the board do to improve morale?  Authorize a $50 million share buyback, of course.  The good news is, you can buy truckloads of Ambac stock with $50 million dollars, as the stock is currently trading at around $1.35.  The bad news is, the company cannot begin to repurchase shares until the March offering of shares is completed by the underwriters.  For those who don't recall, Ambac issued 170 million shares of common stock in mid-March for $6.75 a share.  It also issued equity units with a distribution rate of 9.5% at an 18% premium to Ambac's stock price at the time.  I'm not sure what the hold-up is with the March offering (underwriters stuck with a bunch of underwater stock perhaps?), but if you bought in at $6.75 and are looking for a buyer, the company will gladly take if off your hands for $1.35.  Nice.