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Thursday Equity Ideas: DELL, ABK, NGAS

Dell Inc. (DELL) – computer maker spent $1 billion to buy back 52 million shares, reducing the total count to 2.04 billion. Had $9.8 billion in cash at the end of the first quarter and expects to spend another $1 billion to repurchase shares. But it’s not just the company, it’s also the founder himself, Michael Dell, who is buying shares. And make no mistake about it, it’s no token gesture. Recent regulatory filings showed that he bought 4.51 million shares over the past few days, or about $100 million, no small chump change. This should secure a solid floor on the stock. Trade the range between $22 and $24.

Ambac Financial Group Inc. (ABK) – bond insurer announced that its Board of Directors has authorized up to $50 million for share repurchases of its common stock. CEO Callen believes that the share buyback “represents a good investment of our capital and reinforces our confidence in the long-term stability of our company.” The company has much better ways to spend its money and is probably looking to keep the stock price above a buck. The news did the trick as shares surged 13% late in the day. With the press release out with a little over an hour to go in the session, this could be a Monday morning gapper as 26% of the float is short.

NGAS Resources Inc. (NGAS) – absolutely no item to support the 9.57% pre-holiday trading shortened session thrashing. Most likely just some profit taking as the stock has been a late energy stock bloomer, doubling since March. Always an interesting name to trade this time of year with the upcoming hurricane season. The 2008 National Hurricane Outlook calls for 12-16 named storms, 6-9 hurricanes with 2-5 of those becoming major hurricanes (for you weather buffs, that is category 3 and above).

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It's that time of year again. CNBC's Million Dollar Portfolio Challenge will be getting underway on Monday, May 12. The tournament is similar in fashion to last year; each contestant receives 1 million CNBC Bucks and can trade stocks with a minimum market cap of $500 million. In addition to 10 pretty cool weekly prizes, there is a grand prize of $500,000 to the lucky contestant who finishes with the highest portfolio return. The only twist to the tournament is that currency trading is now allowed.

We'll be doing a number of things this time around to help with your trading success and so you can have better shot at winning the tournament. Follow the links below to learn more, and good luck!