AmTrust – What goes down must come up?

AmTrust announced that it has issued approximately 24.1 million shares of stock at a price of $12.45 per share, generating $300 million in proceeds; mostly from family members. This is family.

And this is AmTrust. A NYC-based P&C insurer that’s bullish on Work Comp.

Bottom Line: seen better days (see below company’s stock performance). Recall: the company is the subject of an FBI probe concerning accounting practices and is being sued by one Benjamin Miller for making “false and/or misleading statements” regarding its business.

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