For those scratching their head as to why AMMB exploded on Friday here is the Dow Jones release---the way I see it,the S&P downgrade to average with negative watch was NOT as bad as people were fearing--and actually a relief,it seems--here is release
October 09, 1998 2:29 PM
DOW JONES NEWS SERVICE
AMRESCO SHOOTS UP 88%
AS CHAP. 11 SPECULATION
EASES
NEW YORK (Dow Jones)--Amresco Inc. (AMMB)
shares shot up more than 88% Friday in a move analysts
attributed to the perception that the possibility of
bankruptcy is waning.
Amresco, which deals in commercial mortgage-backed
securities, has been under intense pressure this week,
following the bankruptcies of two other commercial
mortgage-backed securities concerns: Criimi Mae
(CMM) and Southern Pacific Funding (SPF).
But analysts said the stock's rise indicates that the
prospects for Amresco following suit are easing. And at
least two analysts said one possible reason could be that
another company is interested in acquiring Amresco.
"It's not outside the realm of possibility," said Robert
Napoli, an analyst with ABN Amro Inc.
Ken Posner, an analyst with Morgan Stanley Dean
Witter, said the company has "an attractive franchise"
that could lure a possible suitor.
Other analysts, including Darren Lewis of Southwest
Securities, suggested that the decline in the long bond
bodes well for the company. Movement in the bond
market affects Amresco both because it has short
positions in the long bond and because a steepening of
the yield curve improves its interest rate environment.
An Amresco representative was not immediately
available.
Amresco shares were recently 1 15/16, or 88.6%, to 4
1/8, on volume of 6.9 million shares.
- Nancy Beiles; 201-938-5393
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