This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Wednesday's Financial Winners & Losers

Ambac Financial's (ABK) plan to raise $1 billion through a stock offering disappointed investors hoping for a bailout, sending the financial sector and overall market plummeting Wednesday.

Ambac shares plummeted as much as 19.8% after saying it would sell $1 billion worth of its stock and $500 million in equity units in an attempt to add to its capital base to backstop losses to debt it insures. The move is designed to save its remaining triple-A credit ratings, critical for the company to win new business. More recently, the stock was down 14.2% to $9.20.

Larger rival MBIA (MBI), which has raised $2.6 billion in new capital so far, also sank 4% on the news to $12.46. The NYSE Financial Sector Index slipped 43.34 to 7,160.76.

Ratings changes also were weighing on stocks negatively. Citigroup downgraded the U.S. specialty finance real estate investment trust sector, saying the credit market dislocation appears to be intensifying and the credit overhang may be too big for the Federal Reserve to solve in the short term. Stocks in the sector were downgraded to hold from buy. They include iStar Financial (SFI), which dropped 43 cents to $16.35; Gramercy Capital (GKK), which descended 66 cents to $17.60; KKR Financial (KFN), which lost 93 cents to $13.04; and NewStar Financial (NEWS), which fell 42 cents to $5.16.

An upgrade from Morgan Stanley wasn't enough to revive mortgage lender Fannie Mae (FNM). Based on the lower valuation of the stock, the analyst moved the rating to equal-weight from underweight, although the mortgage sector was cut to cautious from in-line. Freddie Mac (FRE) was maintained at equal-weight and is preferred by the analyst over Fannie. Freddie was trading at $21.48 down 4.9% and Fannie fell 6.3% to $24.32.

CompuCredit's (CCRT) stock slipped 6.3% to $9.32 after a Jefferies & Co. analyst downgraded the lender to hold from buy, saying more of its borrowers are failing to repay their debts. The Atlanta-based company issues credit cards and car loans to consumers with questionable credit histories.

Among the few winners, mortgage insurer MGIC (MTG) ticked up 1.1% to $14.34. On Monday, the company said in a regulatory filing that it planned to sell stock in order to raise capital, as well as exploring other means to boost its capital levels. The company expects to pay up to $2 billion in claims this year.

Brokerage deals continue to get done with Bear Stearns (BSC) seeing a rise in share price after CITIC Securities announced it was negotiating to take its stake in Bear to just under 10%. Bear was up, but more recently was falling 1.9% to $79.74. Also, Ladenburg Thalman Financial Services (LTS) said it has agreed to buy Punk, Ziegel & Co., a New York City specialty investment bank, for an undisclosed amount. The Miami-based investment bank was up 4% to $1.81.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs