Today's Rumor: Bear Goes Belly Up (Who's next?)
A few years ago -- around 2001-02 -- I had strongly recommended Bear Stearns (BSC).
They had a great franchise, they had lagged the rest of the banking sector for no apparent reason, and overall, the quality of management under Ace Greenberg seemed to be terrific. The stock was $54-57.
Subsequently, Bear ran to $170+. I have long since been gone from the stock.
Today, we witnessed it complete the round trip as it careened through that $54-57 range. At one point, today, Bear was down $10, on a rumor that they were going to go belly up.
I have no opinion or special insight as to the truth of that . . . Hey, it could happen, it really wouldn't surprise me, but I don't know, and we have no position in BSC.
But that rumor raises a more interesting question: What companies could take the long dirt nap? Who out there is ripe to be absorbed, merged, taken over (hostile or not). There has to be a long list of mortally wounded firms out there that simply haven't keeled over yet. What CEOs are dead men walking? What stocks are waiting to be euthanasized?
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What say ye?
(I want names and stock symbols!)
>
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Thursday, March 13, 2008 | 09:30 PM | Permalink
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Listed below are links to weblogs that reference Today's Rumor: Bear Goes Belly Up (Who's next?) :
» Bear Stearns Gets Emergency Funding From NY Fed, JP Morgan from The Big Picture
As we discussed last night, liquidity concerns about Bear Stearns (BSC) have been validated. The NY Federal Reserve Bank, and JP Morgan (JPM) have agreed to provide secured funding to Bear and an initial period of up to 28 days. JPM is working with Bea... [Read More]
Tracked on Mar 14, 2008 9:51:53 AM
» Bear Stearns Gets Emergency Funding From NY Fed, JP Morgan from The Big Picture
As we discussed last night, liquidity concerns about Bear Stearns (BSC) have been validated. The NY Federal Reserve Bank, and JP Morgan (JPM) have agreed to provide secured funding to Bear and an initial period of up to 28 days. JPM is working with Bea... [Read More]
Tracked on Mar 14, 2008 9:55:30 AM
Comments
Chrysler. No Lee Iacoca. Nobody cares about manufacturing. No government sponsored K-car purchases. Too much money spent bailing out Wall Street.
Posted by: njdoc | Mar 13, 2008 10:01:13 PM
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