JP Morgan buys Bear Stearns for $2 share - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
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post #1 of 41 (permalink) Old 03-16-2008, 07:53 PM Thread Starter
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JP Morgan buys Bear Stearns for $2 share

NEW YORK (MarketWatch) -- J. P. Morgan Chase & Co. reportedly has agreed to buy Bear Stearns Cos. For $2 a share in a stock-swap deal, valuing the company at just $236 million. :shock:

Bear Stearns stock closed around $30. Does this mean people that bought on friday losted around $28.

http://www.marketwatch.com/news/stor...ecEditorsPicks


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post #2 of 41 (permalink) Old 03-17-2008, 08:45 AM
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Re: JP Morgan buys Bear Stearns for $2 share

Yeah, I saw. Short of some serious miscalculation or some serious debt to value issues (okay, I know Bear Stearns has them) JP Morgan is likely to be in the MONEY in a few years from the purchase.

A heck of a lot more then that. Bear Stearn stock dropped 40% on Friday before the close, so they lost something like 96% of the value of their stock. From $50 a share at the start of trading Friday, to a purchase price of $2 a share now.

Talk about being emasculated.

This is going to royally mess with the markets this week.
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post #3 of 41 (permalink) Old 03-17-2008, 09:53 AM
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Re: JP Morgan buys Bear Stearns for $2 share

The Bear-Stearn building is worth more than $238 million :shock:
Interesting to see what this does to the market today.

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post #4 of 41 (permalink) Old 03-17-2008, 09:58 AM
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Re: JP Morgan buys Bear Stearns for $2 share

daaaaamn...a year ago that stock was over 150/share.

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post #5 of 41 (permalink) Old 03-17-2008, 10:17 AM
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Re: JP Morgan buys Bear Stearns for $2 share

Wow! Shareholders of Bear Stearns will have to go find a job now. Retirement will not be in the near future for them. I would say that most likely had a lot of debt and the assets weren't bringing in the amount of money needed to pay down all the debt. Bad day for those shareholders indeed. I've never heard of Bear Stearns so would anybody like to elaborate for me.

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post #6 of 41 (permalink) Old 03-17-2008, 10:21 AM
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Re: JP Morgan buys Bear Stearns for $2 share

Nevermind manager explained it. Bear Stearns is in the same line of work as JP Morgan. Bear Stearns was murdered by sub-prime mortgages and the assets had become devalued. Bear Stearns went through a fire sale to get out from hot water. That is how JP Morgan got such a good deal.

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post #7 of 41 (permalink) Old 03-17-2008, 01:05 PM
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Re: JP Morgan buys Bear Stearns for $2 share

Also read that the 14,000 employee establishment owned 30% of the company as well. They just lost pretty much all their retirement and also lost their jobs, because JP Morgan is not going to need them. Bear Sterns stock dumped 87 almost 88% from Friday to Monday. Fourteen months ago the company was valued at 3.5 billion. From then to now the company had been devalued 92% when they sold to JP Morgan for $236 million. Sad day for those investors indeed.

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post #8 of 41 (permalink) Old 03-17-2008, 01:32 PM
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Re: JP Morgan buys Bear Stearns for $2 share

This is what unbridled greed and stupidity will do. Many analysts predicted the collapse of subprime mortgage backed securities almost 3 years ago, yet most didn't listen.
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post #9 of 41 (permalink) Old 03-17-2008, 01:36 PM
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Re: JP Morgan buys Bear Stearns for $2 share

Subprime is ass raping mtg companies and credit card companies a like. Citigroup already asked for assitance at the beginning of '08 for all their right offs. Luckily I work for a bank that didn't get involved in sub prime lending. What's even worse is we have a customer or two that could have wrote Bear Stearn's a check for $236MM and bought the whole company and it's debt. It sucks when your debt outweighs your assets that need to repay the debt. That is why I feel credit cards are a good and bad thing. Good for when you're in a jam, but bad when you use them to buy expensive stuff that you have no business buying anyways. I did that some of that and I was lucky enough to get a balance transfer to secure the debt at a rate till the balance is PIF.

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post #10 of 41 (permalink) Old 03-17-2008, 02:49 PM
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Re: JP Morgan buys Bear Stearns for $2 share

[quote author=weezerfan84 link=topic=105849.msg2157583#msg2157583 date=1205773548]
They just lost pretty much all their retirement and also lost their jobs, because JP Morgan is not going to need them.
[/quote]

Some have received job offers from other companies. I think the hope is that they take some of their key clients with them (or that the clients follow them, which ever the case may be). I bought a share Friday just to see what would happen. Ha, there goes 40 bucks then. All the financials are taking a beating today. Those investors should have shorted as soon as bad news was made worse last week. Funny thing I read on the google finance forums was a guy who bought like $170,000 worth of shares on a "tip" and bought 1/3 of that on margin. If that guy was for real, he is in a bad, bad, bad spot: http://finance.google.com/group/goog...6dda0667415b02



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