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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (9431)	10/11/1998 9:52:00 PM
From: LTK007	Read Replies (1) \| Respond to of 29382

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 Next Previous