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Ambac, AIG Shares Remain Wildly Undervalued

Ambac's stock has tremendous upside because the company's legal woes are behind it and its exposure to Detroit's bankruptcy has been overstated, says David Marcus, portfolio manager for the Evermore Global Value Fund. Marcus is also bullish on Vivendi, which he says is aggressively creating value by streamlining its varied assets. Finally, Marcus says AIG is excessively cheap compared to its book value and Wall Street's stated worries about the company's property and casualty business are overblown.