Replies to post #150074 on Mr Cooper Group Inc fka COOP

[scottgjohnson]

just my opinion of course, but if JD sold his stock, doesnt that mean he knows something is going to happen? like a swap, i would want to sell before the stock plummets too. where has JW been?

[XOM]

Gmenfan your concern is well-founded; re. Bear Stearns JPMC closed at $43 on the day it completed its $10/share aquisition. 1.5 months later JPMC shares were down almost 30% to $31. Three days after announcing conversion of BS prefs to new issues, saw a rebound to $40. Granted WMI and BS are two vastly different situations, but it is interesting to analyze PPS movement following acquisitions and equity conversions.


JPMC
May 30, 2008 - $43 Bear Stearns buyout completed
Jul 15, 2008 - $31 JPMC low
Jul 18, 2008 - $40 Following BS P conversion


JPMorgan Chase & Co. Completes Bear Stearns Acquisition
Saturday, 31 May 2008 08:00am EDT
JPMorgan Chase & Co. announced that it has completed its acquisition of The Bear Stearns Companies Inc., effective on May 30, 2008.
http://www.reuters.com/finance/stocks/keyDevelopments?symbol=JPM&developmentId=1334385

JPMorgan Chase & Co. Announces Conversion Of Bear Stearns Preferred Stock Into JPMorgan Chase Preferred Stock
Tuesday, 15 Jul 2008 08:56am EDT
http://www.reuters.com/finance/stocks/keyDevelopments?symbol=JPM&developmentId=1369506

[daulton]

Well JPM has allready been solidified as a too big too fail bank... So although their stock may tumble to $30 or less, it will eventually recover.

And you could always hold your JPM shares for over 1 year, and get your long term CAP gain tax. So even if it does decline, you will save cash on taxes... Just a way of looking at it. IMO

[rainbow1111]

As_we_say-in-the-accounting-world: Well, it all depends. EOM