Wow what a difference a little time makes. In January Bear Stearns was worth $30 Billion and after Firday's firesale was worth about $3.5 Billion and now it sold for under $250 million dollars to JP Morgan Chase (JPM) yesterday. Essentially, BSC investors have been crushed.
The Facts:
The Merger Agreement (PDF)
JPMorgan to Buy Bear Stearns for $2 a Share in ALL Stock Deal
Some Opinion:
Todd Sullivan comments on what he feels like is an incredible bargain:
JP Morgan Dimon's Bargain Purchase
Todd left some room for doubt on whether the shareholders will approve the merger.
See who stands to lose the most and who the large shareholders are here:
A Stake Through the Heart
Bear Stearns: The Facts, Some Opinion, and Who Stands to Lose the Most
Posted by
Nick
at Monday, March 17, 2008
Labels: Credit Markets, Instrinsic Value, Margin of Safety, Sub Prime
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3 comments:
What do you think the intrinsic value of JPM and BSC is?
Great site
Todd
Anonymous,
BSC? BSC is waay outside my circle of competence. You can make a strong case for it being worth more than $2 a share; however, no one outside probably knows for sure.
I'd say that many financial companies are in the "too hard pile" right now. Half my 401k is in my employer's stock so I have a large position (for me) in financial companies as is so I rarely look for other bargains there.
________________________________
Todd,
Thanks!
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