Ambac Earnings Report Requires Interpreter

Ambac reported net income of $823.1 million or $2.80 a share, catching nearly everyone by surprise.  Even my cab driver last night said to me "I don't know about that Manny Ramirez trade, but I know that Ambac is going to post a loss tomorrow!"  After reading several accounts of Ambac's earnings announcement for accuracy's sake, I was forced to confront the reality that it must be true.  Of course, excluding a non-cash gain that the company booked due to a decline in the value of its own debt, Ambac actually lost $1.53 a share, besting analyst's estimates of a loss of 61 cents per share.  That's better.  My head has stopped spinning.  I have returned from the alternate reality universe where the worst really is over.