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i wouldn´t short this one
And so it begins..
"Capitol Hill is increasing its scrutiny into the J.P. Morgan Chase (JPM) and Federal Reserve-backed bailout of failing brokerage Bear Stearns Co. (BSC), as lawmakers asked for more information on the deal Wednesday."
Is $10.00 safe?
News for 'BSC' - (DJ Lawmakers Want More Info On Bear Stearns Deal)
DOW JONES NEWSWIRES
News for 'BSC' - (DJ Lawmakers Want More Info On Bear Stearns Deal)
DOW JONES NEWSWIRES
Capitol Hill is increasing its scrutiny into the J.P. Morgan Chase (JPM) and Federal Reserve-backed bailout of failing brokerage Bear Stearns Co. (BSC), as lawmakers asked for more information on the deal Wednesday.
Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) said that they are requesting "exact details of the sale agreement, how and by whom it was negotiated, and all parties to it," and called the acquisition a "taxpayer-backed" transaction.
"With jurisdiction over federal debt, it's the Finance Committee's responsibility to pin down just how the government decided to front $30 billion in taxpayer dollars for the Bear Stearns deal, and to monitor the changing terms of the sale," Baucus said in a statement.
-Riley McDermid; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 26, 2008 10:29 ET (14:29 GMT)
Copyright (c) 2008 Dow Jones & Company, Inc.- - 10 29 AM EDT 03-26-08
Over what period of time?
"boy I really hope this stock goes up because it is killing me ..i just hope 50$ per share at least..=(
'krzintegraboi'"
I see where you are coming from...But I think there is much upside after the storm...Key is to weather the "bad patch" using house money....
T
Hope u get your way - and the sale is stopped - JPM can buy what is left for pennies on the dollar after the BK - enough time has passed that BSC going BK will not phase the market - so enough - just go BK. and end this.
boy I really hope this stock goes up because it is killing me ..i just hope 50$ per share at least..=(
Maybe this has something to do with it.
http://online.wsj.com/article/SB120648888067763941.html?mod=MKTW
The race to launch the first "actively managed" exchange-traded fund -- one that doesn't merely track an index -- has come to an end. And an unlikely victor crossed the finish line first: Bear Stearns Cos.......
This is far from over in my opinion.
I sense several Lawsuits about to happen.
-----------------------------------------------------------
KLAHOMA CITY, OK, Mar 25, 2008 (MARKET WIRE via COMTEX) -- On March 25, 2008,
Federman & Sherwood filed a securities class action lawsuit was filed in the
United States District Court for the Southern District of New York against The
Bear Stearns Companies, Inc. (NYSE: BSC) and certain officers and directors. The
Complaint alleges violations of federal securities laws, Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including
allegations of issuing a series of material misrepresentations to the market
which had the effect of artificially inflating the market price of the stock.
The class period is from March 12, 2008 through March 14, 2008. This is a
different class period than other lawsuits against Bear Stearns.
Plaintiff seeks to recover damages on behalf of the Class. If you are a member
of the Class as described above, you may move the Court no later than Friday,
May 16, 2008, to serve as a lead plaintiff for the Class. However, in order to
do so, you must meet certain legal requirements pursuant to the Private
Securities Litigation Reform Act of 1995.
If you wish to discuss this action, participate in this or any other lawsuit, or
have any questions or concerns regarding this notice or preservation of your
rights please contact:
------------------------------------------------------------
News for 'BSC' - (=DJ Michigan Pensions Consider Injunction To Stop Sale Of Bear)
By Marshall Eckblad
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--A legal challenge to JPMorgan Chase & Co.'s (JPM) controversial bid to buy Bear Stearns Cos. (BSC) may come not from disgruntled Bear employees, but from Michigan civil servants.
According to an attorney for the Police and Fire Retirement System of the City of Detroit, the pension fund is deciding whether to ask a Delaware court for a temporary restraining order to prevent JPMorgan from all but clinching the deal in early April.
"We are considering moving for a temporary restraining order," said Daniel Krasner, a senior partner at Wolf Haldenstein Adler Freeman & Herz, a New York-based law firm. Krasner said the Detroit pension, which provides retirement and death benefits for the city's police- and fire-department employees, is also coordinating its efforts with the Wayne County Employees' Retirement System, another pension in Michigan.
An attorney for the Wayne County pension could not immediately be reached.
Bear Stearns shareholders have been crying foul for more than a week, since JPMorgan signed a fire-sale deal to buy Bear Stearns, then on the brink of collapse, for $2 a share. The Wall Street investment bank's shares had been trading above $79 as late as March 3.
JPMorgan upped its bid to $10 a share on Monday in the face of protests from shareholders, many of whom have vowed to vote against the deal.
If the two pensions do decide to file suit and ask for a restraining order, they'll have to act quickly.
JPMorgan said Monday that it has a deal in place to purchase 39.5% of Bear Stearns stock around April 8. That purchase will likely mark a watershed moment in the deal, since according to many market observers, such a large stock purchase by JPMorgan would all but seal the New York bank's purchase of beleaguered Bear Stearns.
Under the proposed deal, Bear Stearns shareholders would be allowed to vote on the bid only after JPMorgan's stock purchase, which would all but give JPMorgan a controlling interest in the Wall Street investment bank.
Bear Stearns's board of directors has already pledged to vote in favor of the deal, and the combined voting interest of the board's shares and the shares that JPMorgan plans to buy would leave the proposal only a small number of votes short of passing.
-By Marshall Eckblad, Dow Jones Newswires; 201-938-4306; marshall.eckblad@dowjones.com
---------------------------------------------------------------
News for 'BSC' - (Law Offices of Brodsky & Smith, LLC Announces Class Action Lawsuit on Behalf of Bear Stearns' Employees for ERISA Violations)
BALA CYNWYD, PA, Mar 25, 2008 (MARKET WIRE via COMTEX) -- Law offices of
Brodsky & Smith, LLC announces that a class action lawsuit has been filed on
behalf of The Bear Stearns Companies' (NYSE: BSC) ("Bear Stearns" or the
"Company") current and former employees, alleging the company violated ERISA
laws concerning the management of the Employee Stock Ownership Plan (the "ESOP"
or the "Plan") from December 14, 2006 through the present (the "Class Period").
The class action lawsuit was filed in the United States District Court for the
Southern District of New York.
The Complaint alleges that Bear Stearns and certain of its officers and
directors allowed the imprudent investment of the Plan's assets/participants'
retirement savings in Bear Stearns equity throughout the Class Period, despite
the fact that they clearly knew or should have known that such investment was
imprudent. Specifically, the Company failed to manage the Plan's investments to
prevent the Plan's sole investment in Bear Stearns stock and continued to
maintain Bear Stearns stock as the Plan's sole investment when it was no longer
suitable for participants' retirement savings.
No class has yet been certified in the above action. Until a class is certified,
you are not represented by counsel unless you retain one. If you are a current
or former employee of Bear Stearns, who held Bear Stearns stock through the
Plan, you have certain rights. To be a member of the class you need not take any
action at this time, and you may retain counsel of your choice. If you want to
discuss your legal rights, you may e-mail or call the law office of Brodsky &
Smith, LLC who will, without obligation or cost to you, attempt to answer your
questions. You may contact Evan J. Smith, Esquire or Marc L. Ackerman, Esquire
at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by
e-mail at clients@brodsky-smith.com, or by calling toll free 877-LEGAL-90.
See that 105,500 buy in at 10.94 after hours??
Pretty uneventful here today Ladies. Maybe tomorrow we will see something good..
Oh by the way.....for everyone sending me PMs about my photos asking who they are. They are just goofs taken from emails out there floating around. Just a couple of dumb guys with insane fake tans and an ugly Dog.
Gettin legs again! Lots of shorters out in the 10s I think.
Crap! I didn't even think about the short covering. But most of them probably jumped at $2.00. Hmmm.
haha $20 that is realistic too as the overall market will rally from now on .
Could be $16-$17 with short cover effect!? Why not. It happened that shorters may lose money lol ;)
I might be wrong on that point of them not being able to go to court. I will have to double check on it.
No offense but that dog is a mess. :)
Based on that, I have a sell order in for $60
Well I heard it this morning on the Wall Street Journal Report.
I think I read last night that they could not go to court on it. Look on google. JP hascovered its bases I think.
T_F_N- That's a very good point to consider
and I think you may be correct speaking to the near short-term.
I'm not so certain as to the medium and long-term outlooks however.
I think partly because it's 'in vogue' to try and tear down a mighty company journalistically, it's important to note that the SEC is actively and openly investigating Bear Stearns due to these 'deals'. In this case it's a double whammy. Not only does BSC have the actual SEC investigation to contend with, the public is also aware of this not often revealed development.
I think it prematurely auspicious to consider this '$2.00 to $10.00' business as anything other than mildly interesting. This has a 'Enronian smack' about it, and I'm afraid with all of the new attention recently garnered, many well hidden skeletons may play upon this stage yet.
Couple your outlook with my own, and that may lead to a bumpy ride. Speculators love bumpy rides and the public awaits a sensational story.
Got to look at that $10 dollar price as one would a new stock issue...If the prospects for the company improve under new direction the value will increase accordingly...I say $10 is the new bottom....So to speak...
True, I just wouldn't add any shares here.
JPMorgan Will Pay About $65 per Share for Bear Stearns
http://www.foxbusiness.com/article/analyst-jpmorgan-pay-65-share-bear-stearns_530376_1.html
JPMorgan Chase & Co. (JPM: 46.55, +0.58, +1.26%) will end up paying about $65 per share for Bear Stearns Companies Inc., too high a price for a "deeply troubled company," a Punk, Ziegel & Co. analyst said Tuesday.
Analyst Richard X. Bove's comments came after JPMorgan Chase raised its per-share bid to $10 -- or about $1.47 billion -- from $2. But Bove noted the investment bank will spend just under $1 billion to buy an additional 39.5 million Bear Stearns shares by April 8, and will absorb the first $1 billion in losses from Bear Stearns' portfolio.
While the total initial costs are about $3.44 billion, JPMorgan Chase will likely record a 12-month loss of $6 billion to unite the two companies, bringing the final per-share price to about $65 per share, he said.
Bear Stearns' stock opened trading on March 12 at $65.60.
While some may think that JPMorgan is getting Bear Stearns at a bargain price, "I do not," Bove said in a note to clients. "Bear Stearns is a deeply troubled company which would have no value if the Federal Reserve had not stepped in to bail it out."
JPMorgan does not need Bear Stearns mortgage operation, has a "much stronger investment banking business," and the Bear Stearns New York headquarters is "just another piece of Manhattan real estate that it must rid itself of," Bove said.
While JPMorgan Chase may want Bear Stearns' prime brokerage business, it is likely that the unit's best customers have already left for Goldman Sachs, he said.
Bove currently has a "Market Perform" rating and $44 price target on JPMorgan Chase. The target implies he expects shares to drop about 6% over Monday's $46.55 close.
"What is most disturbing about this deal is that it uses a great deal of Morgan capital to buy a company that is losing market share, in a series of businesses that are declining in size, with a top management team that is best described as sclerotic," he said.
JPMorgan Chase shares fell 30 cents to $46.25, and shares of Bear Stearns rose 34 cents, or 3%, to $11.59 in premarket trading Tuesday. They closed at $46.55 and $11.25 respectively on Monday.
$12 and it may even go higher from the news I just heard on ABC.
Goin up!! Deal has been sweetened again!!
Shareholders can still go to court on it. It is not over and settled by any means.
Just heard on CNBC the offer for BSC may be sweetened to $12 a share. They said if you pay more than that in this run-up its lost money. Good luck to everyone here.
Got to look at that $10 dollar price as one would a new stock issue...If the prospects for the company improve under new direction the value will increase accordingly...I say $10 is the new bottom....So to speak...
It could but JP was being pretty firm as of the reporting on CNBC late this afternoon. Will be nice if it does tho.
I wouldn't doubt it if the deal changes again and the PPS offer is raised again to $20 with other amendments
Blackrock to come in and manage the fund to depleat it for the fed. Dosn't sound to good to me. IMO. This is the way I understand the deal to be worked out currently.
This deal is great! Their not buying the company at 10, they buying 39% and BSC will be its own company, no merge/buy out! So the stock should go up big IMO
OUCH that hurts.
Man! I had the finger on the button @ $3.80 10,000 shares.
I'm not holding past $15.00. I think this will be the best price that get from JP. IMO
What do you guys think this would go to if the $10 deal goes through? Not more than 10 I would think. Am I wrong??
sorry, a rookie here! but is that PR Good or Bad? i honetly did not grasp it that well.
please educate me.
Sure is wild.
Best to you 1millionfl!
Buying during DOOM rocks...
JPMorgan Chase & Co. (JPM) and Bear Stearns Cos. (BSC) on Monday filed a revised merger agreement that, among other changes, will make it tougher for competing bidders to emerge.
The companies had previously disclosed that the deal would include the acquisition of nearly 40% of Bear Stearns' stock by JPMorgan in advance of the vote, giving the buyer a near-majority when combined with votes from Bear Stearns executives and directors. Monday's filing included the disclosure that, in addition, Bear Stearns can only accept a competitive offer from a "qualifying party."
For example, qualifying parties must enter into guaranties of Bear Stearns' business similar to those agreed to by JPMorgan and the Federal Reserve Bank of New York. Potential bidders must also demonstrate sufficient financial strength and must be able to enter into support and financing arrangements with the Federal Reserve, the filing said.
The new terms also contemplate the possibility of successful legal action against the deal. JPMorgan will be permitted to back out of the deal if it is legally kept from acquiring or voting the near-40% stake in Bear Stearns, the filing said.
-Tony Cooke, Dow Jones Newswires; 202-862-1347; tony.cooke@dowjones.com
(END) Dow Jones Newswires
March 24, 2008 17:49 ET (21:49 GMT)
Copyright (c) 2008 Dow Jones & Company, Inc.- - 05 49 PM EDT 03-24-08
Maybe. IMO everyone is confused on its true value. I think after hours will tell a lot as PR will be flying constantly on the progress of the whole deal. This is a VERY emotional play for many. We shall see.
Where we going? Is there an end of day run here folks?
Here we go...
Yeah you know me...
I agree Van,
Don't I know you
Agree. It's consolidating nicely around $12.
She's gonna run like a wild stallion into the close IMO!!!
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