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Bear Stearns sells itself to JP Morgan for $2/share or $236 million
- Thread starter Teh Don Ditty
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WaMu, maybe, but Citi's market cap is still a hair under $100 billion. I don't see anyone buying them anytime soon...
You know, I pulled the wrong the symbol. CIT =! Citi Group.
Can you kindly edit my quote to reflect the right stock symbol?
WaMu will perhaps go to Citi or JP Morgan. Capital One could be a player, but with their recent merger with North Fork Bank I doubt that'll happen. (Disclaimer: I am employed by Capital One.) Bank of America could also be thrown in there, but they are busy with the Country Wide mess right now.
I'm interested to see what happens to some of the online players like TD Ameritrade and - especially - ETrade.
Is ETrade really worth $2.50 a share when Bear Stearns is $4?
The online traders are interesting. It's amazing with those stock prices right now. It's almost too much for me to wrap my head around. I mean who woulda thunk it, Bear Stearns almost going bankrupt and had to be bought.
Schwab and TD have expressed interest in E*Trade. They recently hired a former JP Morgan executive Donald layton to become CEO. Perhaps they are angling for JPM to purchase them?
Schwab and TD have expressed interest in E*Trade. They recently hired a former JP Morgan executive Donald layton to become CEO. Perhaps they are angling for JPM to purchase them?
Not surprising at all. Markets are expecting a 100 bps rate cut tomorrow.. that usually leads the stocks to rally. A 75 bps cut is almost guaranteed.. 100 bps.. about 60% chance is being priced in.
If it's a rally, it should be a 'fake' rally. I have been hoping and praying for a rally since the last few days so I could short again.
Citi has been basically trying to scramble around.. find investors to pump capital. Makes me really wonder what they're hiding. Maybe they're just trying to ride it out.
That 100 bps will rally the stocks for the day, after that it's back down. Like you said it's a "fake" rally.
The Fed, it seems, is behind the 8 ball here. They are behind a few steps, and that's not good for anybody.
They could always ask the federal government
Something is terribly wrong with Citi, what though it the question. (As you alluded to)
Oh boo hoo. A company worth millions had to sell itself, cry me a river. At least the price of oil went down.
Correction, billions.
At one juncture the price of Bear Stearns was around $175/share. The federal government gave them to bail themselves out and still their stock tanked and they were forced (if you will) to sell. Do you not realize the implications of Bear Stearns tanking and being sold?
So what happens when the Fed runs out of basis points to cut?
If the predictions are right, we'll be at 2 percent tomorrow. Not much room to cut from there if a "temporary market boost" is needed...
If the predictions are right, we'll be at 2 percent tomorrow. Not much room to cut from there if a "temporary market boost" is needed...
I just can't shake the feeling that if you're long term on the markets, this is a buying opportunity.
I'd love to see the Bear Stearns thing and the rate cut as a one-two punch to restart good rally.
Edit: Kramer telling someone to keep Bear stearns.
I'd love to see the Bear Stearns thing and the rate cut as a one-two punch to restart good rally.
Edit: Kramer telling someone to keep Bear stearns.
Yes and no.
I still think we see Apple sub $110, Google sub $400 and Yahoo sub $20.
Then I think we're getting near bottom.
Of course, it's probably not a bad idea to average down since it's tough to call bottom and there's deals to be had on very solid, very profitable companies right now.
Though I'd avoid the financial sector for fear of another Bear Stearns type situation.
Perhaps an Apple-related analogy would help:
Imagine that tomorrow, Microsoft announces that it bought Apple at $2 per share.
Think of what that would do to the Mac market.