BSC - Bear Stearns Companies Inc. - Stock Market Forum, Penny Stocks, FOREX, NASDAQ, AMEX, NYSE, Live Chat

Skydaemon · #1 03-13-2008, 11:23 AM

Seems to be in freefall today on "no news" and below it's 52 week low.

BSC

If you wanna gamble on a div stock this might be a choice.

There are rumors that it might be in trouble but no apparent news.

**BadThad** · #2 03-13-2008, 12:46 PM

Looks like "concern":

Quote:

Bear shares sink as concerns about mortgages weigh
12:27p ET March 13, 2008 (MarketWatch)
NEW YORK (MarketWatch) -- Weighed down by growing concern about the company's mortgage holdings and its ability to finance them, Bear Stearns Cos. shares fell sharply Thursday but were off morning lows that at one point had them headed for their biggest one-day percentage drop since the stock market's October 1987 crash.

The stock recently fell 10% to $55.26 but had traded as low as $50.48 at one point, representing a decline of more than 16%. The last time the Wall Street firm's shares had a bigger one-day percentage loss than that was Oct. 19, 2007.

There was no company-specific news to account for the move lower, but investors are nervous about margin calls on mortgage-backed securities hitting several firms, most notably Carlyle Capital Corp. and Thornburg Mortgage Asset Corp. .

Bear Stearns is a creditor of Carlyle Capital, which is near collapse and having its assets, primarily AAA-rated mortgages from Fannie Mae and Freddie Mac, seized by creditors. See full story.

"The Carlyle default has ramped up the worries in the market that nobody is too big to fail," OptionMonster.com's Jon Najarian wrote in a market update for clients.

"Those that are being hit hard include Bear Stearns. ... Other brokers and i-Bankers are likewise feeling the pain, but that pain is most evident in Bear, where over 140,000 puts have changed hands in the first 90 minutes of trading," he said.Najarian, who pointed out that his firm has covered shorts in Bear Stearns' stock, said that the average turnover of the past five days has been 27,000 puts.

"So in the first 1 1/2 hours to see us trade over five times that pumped up volume, well it screams how desperate things are in Bear," he said.

Skydaemon · #3 03-14-2008, 09:21 AM

Bear Stearns Companies Inc JPMorgan Chase And Federal Reserve Bank Of NY To Provide Financing for a period of 28 days, working on permanent financing
- JP Morgan in conjunction with the Federal Reserve Bank of New York, has agreed to provide secured funding to Bear Stearns, as necessary, for an initial period of up to 28 days. Through its Discount Window, the Fed will provide non-recourse, back-to-back financing to JPMorgan Chase. JPMorgan Chase is working closely with Bear Stearns on securing permanent financing or other alternatives for the company.

Rumors appear to have something to them.

**Grizzums** · #4 03-14-2008, 10:44 AM

Wow! Down close to 50%

64 million shares traded already...what's there outstanding... Just over 100 million? Crazy, but I'm not surprised...right now I guess what I am surprised with is that the other financials like JP and Lehman are hanging in. It was just a couple days ago that CEO Shwartz said that they were okay as far as liquidity and b/s.

I just heard more recommendations about the fed coming in to buy up all that bad paper...ill be pissed if that's the case.

**Grizzums** · #5 03-14-2008, 11:06 AM

Another bailout by the Fed...

through JP and JP will assume no risk with BSC collateral....

....free market capitalism, too bad we don't have it here in the US.

Skydaemon · #6 03-14-2008, 11:09 AM

You know what's ironic?

I'd bet big money the collateral bear sterns gives JPMorgan are the seized assets from the carlyle fund.

**Grizzums** · #7 03-14-2008, 11:17 AM

Quote:

Originally Posted by Skydaemon

You know what's ironic?

I'd bet big money the collateral bear sterns gives JPMorgan are the seized assets from the carlyle fund.

Oh yeah, I imagine that is definitely the case. I know one thing...JP is going to get a good look at BSC assets because of this stupid arrangement and I imagine try and determine whether or not they would like to buy them out. Perhaps even being able to cherry pick assets. Todays events show one thing....heads and Co's can roll in a moment notice....the financial sector of the market is walking along the edge of the cliff...

Skydaemon · #8 03-14-2008, 12:10 PM

Though nobody noticed WM (washington mutual) got it's rating downgraded a level today as well.

I don't plan to touch Bear Sterns until it either falls a lot more or the knife stops the fall for a day. I expect asia will freak later tonight when they find out a big bank nearly failed.

**BadThad** · #9 03-14-2008, 01:43 PM

Quote:

Originally Posted by Skydaemon

Though nobody noticed WM (washington mutual) got it's rating downgraded a level today as well.

I don't plan to touch Bear Sterns until it either falls a lot more or the knife stops the fall for a day. I expect asia will freak later tonight when they find out a big bank nearly failed.

Yea, best to wait this one out.....more downside coming next week I'm sure.

**Grizzums** · #10 03-14-2008, 03:20 PM

As it turns out....perhaps this story of Mr. Cayne was true....I mean he must have been smoking something to have as much money wrapped up in BSC as he did....

"Bear Stearns CEO says pot smoking story untrue"

http://www.reuters.com/article/funds...48190620071101

I think he took just a weeeeee bit of a loss today. If he wasn't smoking before....I bet he fires up one tonight, eh?