See the cliff ahead…this isn’t just subprime kids…
http://www.reportonbusiness.com/servlet/story/RTGAM.20080315.wabcp15/BNStory/Business/home
word is that JP Morgan is looking to buy Bear Stearns somewhere int he $15-$20 range. Looks like it might be a rocky day for me on Monday.
PALMETTO C ~ 16’ Sea Fox
The Morris Island Lighthouse web page
www.savethelight.org
I hope you’re not as stupid with your real money.
If you think that the derivative exposure that priced this deal at $2 per share is exclusive to BSC you’re dead ****ing wrong.
I will lose money tomorrow in the stock game (Capt Ed watch out, I’m gunning for you!)and also with a some call options I placed before the close of business last Friday, betting BSC would rally a bit come Monday. I took a shot and lost…I will not call that stupid, as you have so eloquently done…
EDIT to add: maybe I’ll go smoke some fatties with Jimmy Cayne on Monday…
QUOTE: JPMorgan’s acquisition of Bear Stearns represents roughly 1 percent of what the investment bank was worth just 16 days ago.
SIMPLY AMAZING!!!
PALMETTO C ~ 16’ Sea Fox
The Morris Island Lighthouse web page
www.savethelight.org
quote:
Originally posted by Bonzo72BSC will be bought out by Monday…closed at $30.00 today…figure up to $52.50 buyout target. this is halfway between the book value of around $75 and the closing point today. I have MAR 35’s and APR 50 call options…and should be sitting pretty, especially the front month calls…
I’d like to get calm like a bomb’s opinion here too…PALMETTO C ~ 16’ Sea Fox
The Morris Island Lighthouse web page
www.savethelight.org
Don’t do it!!
…oops …too late.
Bonzo quote---->>“Move of the week: Watch Goldman Sachs with their earnings!!!”
It ain’t gonna be pretty on Tuesday unless the Fed meeting helps a small degree:
March 16 (Bloomberg) – Goldman Sachs Group Inc. will announce asset writedowns of about $3 billion this week, partly based on the declining value of its stake in Industrial & Commercial Bank of China Ltd., the Sunday Telegraph said, without citing anyone.
The investment bank may report a decline in first-quarter earnings of about 50 percent, the newspaper said.
Goldman will write down about $1.6 billion from its leveraged loans business and a further $1.1 billion from assets owned by the bank’s private equity arm, the Sunday Telegraph said.
Luckily I only have a small $1,024,116.00 bet on them…[:0]
Stocks split all the time but the BSC meltdown/JPM buyout is quite a “split” if you are on the wrong side of it.
JPM $36.54 close x .05473 = $1.9998 for BSC
For every 18.271 shares of BSC = JPM gives one share of JPM @ $36.54
Holy Moley…I love my mutual funds more all the time…
been nice hanging out with you up here around the top. gonna take a LOT of work for me to come back now![:0]
PALMETTO C ~ 16’ Sea Fox
The Morris Island Lighthouse web page
www.savethelight.org
I thought for sure we were going to get a nice pop higher somewhere overseas with the ECB or BOJ cutting rates. Looks like that won’t be the case.
Bank of Singapore just pulled their prime accounts with LEH. We may just see TWO major investment banks go to ZERO in less than a week.
THIS **** IS ALL OVER THE PLACE FOLKS!
something is stinking up the joint around here. oh yea, it’s our great banks and financial institutions.
I guess with all this volatility we should buy the exchanges…CME group just announced the purchase of the NYMEX. More consolidation in this area…
PALMETTO C ~ 16’ Sea Fox
The Morris Island Lighthouse web page
www.savethelight.org
Just wait until the world figures out the MBS/CDOs they’ve stuffed their pensions with aren’t really “AAA” or BBB for that matter…
Bonzo, haven’t I been harking a possible collapse of financial institutions to you for a couple of months now? Does my “doom and gloom” opinion hit home with you a little more today than it did last week? I kept telling people to “be careful” in this environment and that YES, IT CAN HURT MUCH MORE… For all the bottom callers out there, I will say that BSC finally looked like a good deal at $2 share.
quote:
Originally posted by skinneejI will say that BSC finally looked like a good deal at $2 share
</font id=“quote”></blockquote id=“quote”>finally, skinneej with some positive comments…you wanna loan me some VSE dollars? actually Euros would be better…
you are right, I have been on the wrong side of the trade for the last two months or so. guess I’d sound like a fool stating this is the bottom again, but here it goes…THIS is the bottom!
PALMETTO C ~ 16’ Sea Fox
The Morris Island Lighthouse web page
www.savethelight.org
Are your hands bleeding pretty badly about right now? You will have that falling knife by the time it hits the ground. I promise. 
it ain’t over…we are in the 4th inning of a bad baseball game scheduled for nine.
quote:
As Bear Stearns careened toward its eventual fire sale to JPMorgan Chase last weekend, the cost of protecting its debt, through an instrument called a credit default swap, began to rise rapidly as investors feared that Bear would not be good for the money it promised on its bonds. Not familiar with credit default swaps? Well, we didn't know much about collateralized debt obligations (CDOs) either — until they began to undermine the economy. Credit default swaps, once an obscure financial instrument for banks and bondholders, could soon become the eye of the credit hurricane. Fun, huh?The CDS market exploded over the past decade to more than $45 trillion in mid-2007, according to the International Swaps and Derivatives Association. This is roughly twice the size of the U.S. stock market (which is valued at about $22 trillion and falling) and far exceeds the $7.1 trillion mortgage market and $4.4 trillion U.S. treasuries market, notes Harvey Miller, senior partner at Weil, Gotshal & Manges. “It could be another — I hate to use the expression — nail in the coffin,” said Miller, when referring to how this troubled CDS market could impact the country’s credit crisis.
Credit default swaps are insurance-like contracts that promise to cover losses on certain securities in the event of a default. They typically apply to municipal bonds, corporate debt and mortgage securities and are sold by banks, hedge funds and others. The buyer of the credit default insurance pays premiums over a period of time in return for peace of mind, knowing that losses will be covered if a default happens. It’s supposed to work similarly to someone taking out home insurance to protect against losses from fire and theft.
Except that it doesn’t. Banks and insurance companies are regulated; the credit swaps market is not. As a result, contracts can be traded — or swapped — from investor to investor without anyone overs
Ok, now I am screwed. I was just testing the waters trying to sell a share of BSC to see what happened. Well, it sold them ALL! And now I cannot make any moves, can’t even sell short. This just blows. Guess I am just along for the ride. Maybe I’ll pose as Cracker and join the game…
PALMETTO C ~ 16’ Sea Fox
The Morris Island Lighthouse web page
www.savethelight.org
I think that’s why VSE provides the “Preview Trade” feature…
you must have gotten excited about all the profit and pulled the trigger early.
my beer must have slipped out of my hand and hit the enter button…
PALMETTO C ~ 16’ Sea Fox
The Morris Island Lighthouse web page
www.savethelight.org