Let's start by saying $2 per share was absolutely absurd. Speculation along cannot account for a 60% discount, especially on governement insured debt.
NEW YORK (AP) -- JPMorgan Chase & Co. was discussing a deal that would increase fivefold its offer for Bear Stearns Cos. to $10 a share, The New York Times reported Monday.
The talks Sunday were an attempt to satisfy Bear Stearns stockholders upset over JPMorgan's offer of $2 a share for the struggling investment bank, the newspaper said on its Web site, citing people involved in the negotiations.
The original price for Bear Stearns was part of a deal struck last week at the urging of the Federal Reserve and Treasury Department.
The Fed, which would need to approve any change in the agreement, was balking at the new price, the Times said. Such opposition could postpone the new agreement or derail it entirely.
In an attempt to speed majority shareholder approval, Bears board was trying to authorize the sale of 39.5 percent of the firm to JPMorgan, the Times said. State law in Delaware, where the companies are incorporated, allows a company to sell up to 40 percent without shareholder approval.
A spokeswoman for JPMorgan declined to comment Sunday night, the Times said. A Bear Stearns representative could not be reached.
A spokesman for the Federal Reserve would not comment on the central banks involvement in the negotiations, but denied it had directed the original sale price, the newspaper said.
Showing posts with label bear sterns. Show all posts
Showing posts with label bear sterns. Show all posts
Monday, March 24, 2008
Sunday, October 28, 2007
Financial Sector hot picks
Bearing on the Bull
Expect Stan O'Neal, the beleaguered chief executive of Merrill Lynch & Co to step down in the next few days. In reality it is nothing that he did, as much as he was a victim of the success and failures of the financial sector. Unfortunately, when it comes to financials everyone expects them to consistently see double-digit growth; ML had warned of weaker earning, but in the weeks leading up to the report, they had done a wonderful job of downplaying their actual sub-prime exposure. All of this adds up to bad news for high-paid Execs and good news for investors. Merrill will bounce back, and now is the time to buy. As soon as the CEO is gone, the Market will respond, on speculation, that Merrill will turn things around.
Rating: Strong Buy
Bullish on Bear
Citic, Asia's largest securities firm, will pay $1 billion for the equivalent of 6 percent of New York-based Bear Stearns's shares, and the US brokerage will invest the same amount in Citic, the companies said yesterday. They agreed to team up to sell financial products and services in China, and plan a Hong Kong-based joint venture for other Asian markets.
Bear Stearns chief executive James "Jimmy" Cayne, 73, trails US rivals in China, where he has struggled to build a business since opening a Beijing office in 1992. His company has fallen as much as 37 percent this year in New York trading, beset by the collapse of the US sub-prime mortgage market. Surging defaults on loans to home buyers with poor credit histories pushed two of the firm's hedge funds into bankruptcy and eroded its fixed-income revenue.
Bear is still not as attractive as Goldman or Lehman on the short term, but in terms of value it is a cant miss stock. Almost every American bank lost money and/or brokerage house lost money this year. Why is that.
It seems that the Aussie's have the answer, just look at ANZ: they remained glued to their core competency and established a diverse mix of capital investments. Also known as good management. They have a 33% P/E ration, and expect 12% in growth over the next 12 months. Additionally, they are well placed in emerging markets, which tend to have high yields.
Rating: Buy
Expect Stan O'Neal, the beleaguered chief executive of Merrill Lynch & Co to step down in the next few days. In reality it is nothing that he did, as much as he was a victim of the success and failures of the financial sector. Unfortunately, when it comes to financials everyone expects them to consistently see double-digit growth; ML had warned of weaker earning, but in the weeks leading up to the report, they had done a wonderful job of downplaying their actual sub-prime exposure. All of this adds up to bad news for high-paid Execs and good news for investors. Merrill will bounce back, and now is the time to buy. As soon as the CEO is gone, the Market will respond, on speculation, that Merrill will turn things around.
Rating: Strong Buy
Bullish on Bear
Citic, Asia's largest securities firm, will pay $1 billion for the equivalent of 6 percent of New York-based Bear Stearns's shares, and the US brokerage will invest the same amount in Citic, the companies said yesterday. They agreed to team up to sell financial products and services in China, and plan a Hong Kong-based joint venture for other Asian markets.
Bear Stearns chief executive James "Jimmy" Cayne, 73, trails US rivals in China, where he has struggled to build a business since opening a Beijing office in 1992. His company has fallen as much as 37 percent this year in New York trading, beset by the collapse of the US sub-prime mortgage market. Surging defaults on loans to home buyers with poor credit histories pushed two of the firm's hedge funds into bankruptcy and eroded its fixed-income revenue.
Bear is still not as attractive as Goldman or Lehman on the short term, but in terms of value it is a cant miss stock. Almost every American bank lost money and/or brokerage house lost money this year. Why is that.
It seems that the Aussie's have the answer, just look at ANZ: they remained glued to their core competency and established a diverse mix of capital investments. Also known as good management. They have a 33% P/E ration, and expect 12% in growth over the next 12 months. Additionally, they are well placed in emerging markets, which tend to have high yields.
Rating: Buy
Wednesday, September 26, 2007
Bad Bank
Now that the strike is over, look for GM's stock price to dip back down. GM still remains at a competitive disadvantage over international companies, which do not There was big news today from Goldman, and it pertained to Merrill Lynch. Now is a good time to sell Merryl. And Bear Sterns may sell off a portion of its bank to either Wachovia, Bank of America, or Chase; that is unless Warren Buffet doesn't buy them first.
BS
All of that said, now is a good time to buy Bear Sterns. The price is still at the $115 point, but it will bounce back. This is "buy low" time. If BS does sell off a portion of its banking functions, that will only drive the price higher. I would not be surprised to see Bear's stock jump as high as $135 in the next two weeks.
Target
Target released bad news, they number of customers going into its stores, the problem is that now that WalMart is going green the outlook for Target is not looking good. They need to improve their logistical supply chain. I would not suggest buying Target in the short-term; the market that they compete is in way too tight and profit markets are very slim.
Strong Buy
Advanced CustomVue the company that owns the Lasik laser is a good choice to buy. They have bounced back from a recent recall and will be getting a shot in the arm from outerspace. NASA will give its stamp of approval, allowing Astronauts to have Lasik surgery. This after the Air Force will being allowing fighter pilots to have the procedure as well. Also, they have 5 new products that will be rolling out over teh next few months.
BS
All of that said, now is a good time to buy Bear Sterns. The price is still at the $115 point, but it will bounce back. This is "buy low" time. If BS does sell off a portion of its banking functions, that will only drive the price higher. I would not be surprised to see Bear's stock jump as high as $135 in the next two weeks.
Target
Target released bad news, they number of customers going into its stores, the problem is that now that WalMart is going green the outlook for Target is not looking good. They need to improve their logistical supply chain. I would not suggest buying Target in the short-term; the market that they compete is in way too tight and profit markets are very slim.
Strong Buy
Advanced CustomVue the company that owns the Lasik laser is a good choice to buy. They have bounced back from a recent recall and will be getting a shot in the arm from outerspace. NASA will give its stamp of approval, allowing Astronauts to have Lasik surgery. This after the Air Force will being allowing fighter pilots to have the procedure as well. Also, they have 5 new products that will be rolling out over teh next few months.
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