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Old 03-17-2008, 09:18 AM   #41
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What, you think they paid cash?

That $1B building probably has $995M of debt on it. Hell, it's probably owned by a REIT in a sale leaseback.
You're probably right on that one.
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Old 03-17-2008, 09:28 AM   #42
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Maybe Countrywide cut their good buddies at BSC a special deal on a subprime.
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Old 03-17-2008, 09:31 AM   #43
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Jamie Dimon is no dummy. Bottom line, he got the Fed to back him so has NO RISK to take over Bear's liabilites. Plus, he knows Bear can't raise any money in the markets or borrow any more money, so he gives them an artificially bid as a way out.

Another bank may come in to outbid JPM, but Jamie is testing the waters on that, and I am sure he is prepared to move the bid to $8-$10 a share if necessary, because all he really WANTS is the clients of Bear, and that to him is worth the money........
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Old 03-17-2008, 09:34 AM   #44
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Everything I am reading is predicting a very difficult week ahead (and beyond). Even sources that I would expect to be fairly conservative are saying alarming things, and sounding like Cramer. They say that other banks are sure to follow, and the interest rate may be cut 1-2% by Tuesday but that may not be enough to help, and that the dollar is tanking.

So, I am holding on to my hat and because this part of the roller coaster ride might be long and bumpy (apparently).
Sheesh. The market has been open for over an hour, and the Dow is only down 19 points!!

I'm beginning to wonder why it isn't down more. Maybe this won't be so bad as columnists and other media reporters expected.

Edited to add... OK, OK, 51 points a minute or two later. Maybe it's a little volatile, but still, I expected it to be down 200-300 points at open.

Just keep on buying, everyone...
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Old 03-17-2008, 09:35 AM   #45
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The Bear Stearns new headquarters is worth over $1 billion. JP Morgan purchased Bear for $236 Million, so they probably acquired the building at a discount of approximately $764 million.

Free Preview - WSJ.com
They just said on CNBC that the breakup value of BSC is $7.7B. Since JPM would buy it for $240M, that would be a 32:1 ratio. Sounds like a pretty good investment.
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Old 03-17-2008, 09:44 AM   #46
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Yep my JP bounced up 2.89/shr. Hope they don't get carried away - I may want to buy some more in coming months - with mad money of course.

heh heh heh -
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Old 03-17-2008, 09:58 AM   #47
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Yep my JP bounced up 2.89/shr. Hope they don't get carried away - I may want to buy some more in coming months - with mad money of course.

heh heh heh -
So true! A reasonable low is nice for buying, as long as we don't go over a cliff or something and end up taking decades to recover.
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Old 03-17-2008, 10:03 AM   #48
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Yep my JP bounced up 2.89/shr. Hope they don't get carried away - I may want to buy some more in coming months - with mad money of course.

heh heh heh -

looking at it as well, but need to read up first about the risk they are taking on. otherwise it looks like they paid peanuts for some nice businesses
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Old 03-17-2008, 10:04 AM   #49
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You think that loss makes this a bottom? God, that seems hopeful to me. How can all these companies lose this much money?
But it's a paper loss...

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\

Is that a bottom call?
I'm more interested in a booty call...
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Old 03-17-2008, 10:17 AM   #50
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But it's a paper loss...
That's the problem with leverage and buying on margin. "Paper losses" are just that for people (and businesses) who can wait it out, are not leveraged and have a long timeframe. For those who are heavily leveraged, "paper losses" can lead to a death spiral of margin calls, forced sales and further declines in their asset values.
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Old 03-17-2008, 10:35 AM   #51
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Sheesh. The market has been open for over an hour, and the Dow is only down 19 points!!

I'm beginning to wonder why it isn't down more. Maybe this won't be so bad as columnists and other media reporters expected.
It's not the last hour of the trading day yet. Check back after 3 PM EDT. That's when most of the recent carnage has occurred and when most rallies have faded.
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Old 03-17-2008, 10:40 AM   #52
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and JP Morgan which is part of the Dow is up 10%
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Old 03-17-2008, 11:03 AM   #53
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It's not the last hour of the trading day yet. Check back after 3 PM EDT. That's when most of the recent carnage has occurred and when most rallies have faded.
You're right. I will hold onto my hat and keep checking. Down 131 by now (noon Eastern time). So far not bad but as you say, who knows until the last hour of the day.
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Old 03-17-2008, 01:58 PM   #54
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They just said on CNBC that the breakup value of BSC is $7.7B. Since JPM would buy it for $240M, that would be a 32:1 ratio. Sounds like a pretty good investment.
The talking heads said something like $6 billion of liabilities such as shareholder lawsuits and such...

So the discount is not as much as it looks...

BUT, it might have been cheaper to let it go into bankruptcy and then buy up the pieces that you want... without any liability coming with them.... the market would have tanked, but who cares.....
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Old 03-17-2008, 01:59 PM   #55
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OK, it's 3 PM Eastern time and the Dow is up 31 points or so.

Let the carnage begin?
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Old 03-17-2008, 02:03 PM   #56
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The talking heads said something like $6 billion of liabilities such as shareholder lawsuits and such...
The first class-action lawsuit has just been filed by the shareholders.
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Old 03-17-2008, 02:50 PM   #57
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OK, it's 3 PM Eastern time and the Dow is up 31 points or so.

Let the carnage begin?
closed out my shorts just now as well

one thing i noticed in the last year or so is that days where the futures are down some insane amount the market usually closes up or at the upper range of the day's range

and charts look like we are making a bottom, at least for now
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Old 03-17-2008, 03:26 PM   #58
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Everything I am reading is predicting a very difficult week ahead (and beyond).
I use to think the press had an agenda, however, in this case I think it is more 'If it bleeds it leads'.

Or are they so stupid to be pursuing a political agenda. i.e. bad for the economy, good for Democrats. I would hope not, but in the past bull market they never publicized the good. When the unemployment rate was under 4.6%, you never heard about it. If you did it always had a negative attached, like 'quality of jobs are not their'.
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Old 03-17-2008, 04:10 PM   #59
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170 a share a year ago, and sold at 2 bucks a share....
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Old 03-17-2008, 04:28 PM   #60
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