Yesterday Ambac Financial Group, Inc. (NYSE:ABK) surged up by 26.29% and closed at $1.20 with total 
volume of over 68 million shares. This is an amazing jump on the market as the ABK’s average traded volume is about 54 million.
The Amback’s stock price rose up after a resistance level at 0.90, and its market cap reached 346.06M. As a result, it became among the top 10 insurance stocks with the highest short interest on the market.
ABK’s quarterly results for 2010 show a profit but it’s on the basis of a change in tax law, allowing the company to carry back operating losses in 2008 and 2009. The company’s positive earnings for 2009 were a result of non-operating activities and ABK has not generated any new sources of revenues so far.
Based on all the facts, we can assume that no matter the traders took some quick profits, there is no fundamental basis for Ambac’s recent rise and its future remains doubtful.
