JPMorgan (JPM) Buying Bear Stearns (BSC) For $2 Per Share!

42 Responses

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1. 1Zykosis(TIMBUCKS: $9)

   March 16th, 2008 at 6:22 pm

   

   

2. 2timsykes

   March 16th, 2008 at 6:30 pm

   

   exactly, can u say gold $1,100?

3. 3Jorge(TIMBUCKS: $1)

   March 16th, 2008 at 6:36 pm

   

   Oil $125 by week’s end…

4. 4Uranus6

   March 16th, 2008 at 6:43 pm

   

   Wow. And I was thinking of picking up a bank on Monday for an interest rate pop. All of the financials might as well be nuclear waste now.

5. 5Nigel

   March 16th, 2008 at 7:32 pm

   

   Oh, give it up. The commodity inflation is just the LAST of our worries. We are in a MAJOR recession, and its going to be nasty, and has just started. The LAST thing the USA will be doing is using MORE ENERGY. Prices for OIL will subsiide, and in a MAJOR way. Be long and know that you can be occularly pennetrated at ANY TIME. GOLD is the same. How can anyone with any intelligence believe that with the currenty oil inventories reported for the last 8 weeks, that this pricing is REAL. HAHAHA, I spit on this commodity inflation=real story BULL-SHIP! You you safe until the fix is in. Now we see the FED do a .25 emergency cut. HAHA. The bulls are SOOOO FUCKED. They have fully priced in .75 and are asking for 1.00. Ben has just admitted by doing this that he has NO POWER LEFT. Just pulled the pin on the grenade that had been firmly plannted between his nuts back in August. Poor soul. 2$/share the possibly the most storied financial firm in all of THE USA? Holy crap things are just getting worse, TIm you are right LEH is fucked. So could be many others. Where there is ONE cockaroach, there are many, and who would have EVER thought of BSC as a cockaroach. They cannot cut .75 on tuesday, and most likely cannot do .50. Dollar has a 20% CRASH RISK right now if the reserve status is undone, which it currently has not been. This is getting interesting….BE VERY CAREFUL if you dont know what is gong on. You can be squicked with a quickness. Good luck.

6. 6Dan

   March 16th, 2008 at 7:50 pm

   

   BSC to penny land…

7. 7leo00o83 (Amir)

   March 16th, 2008 at 8:07 pm

   

   WOW!!!!!!!!!!!!!!!!! 236 million??!?!!?!?!?!?!?!? that IS a penny stock!!!!!

   To think at 160 in early 07 they were worth 18.9 BILLION $ that is 18.6 BILLION of net worth out the door!!!

   I’m still in shock.

8. 8Hugh E. Rexson

   March 16th, 2008 at 8:34 pm

   

   Nigel - I agree with you on the recession. It will be long and nasty. But gold will subside? More like gold will fluctuate and head up to 1650 as our toxic shit reverberates throughout the world markets and people decide to put their money in the one thing that historically been a refuge through times of crisis. And oil will increase for a while, because Opec has no intention on loosening the grip until we fix our currency. This recession has not hit most of America yet. Ultimately we will use less energy through a recession, but really how much less? People gotta turn on the lights and computers, and charge their cell phones and ipods, and bluetooth headphones and mics, and keep on their new 51″ LCD’s (thanks Bush!) to watch reruns of Friends and Seinfeld. Just stay away from use of margins right now or you will get screwed in the fluctuations.

   And as for commodity inflation, it is real. Increased oil prices=increased transportation prices=higher market prices. Go check out shadowstats.com. And Tim can go walk by Ess-A-Bagel on 51st and 3rd and see that they have a nice little sign explaining why bagels just went up 25 cents. So, commodity inflation is real although I wouldn’t be putting my money in commodity related companies right now, as some of those are gonna get trimmed as the Dow retraces towards 8000.

9. 9Nigel

   March 16th, 2008 at 8:54 pm

   

   Hugh, I agree with most of what you said. Commodities are not a safe haven, and they are being treated as such. BIG MISTAKE. Bank of Japan is trying to stick save the dollar and their own interests right now. We are aboutt to break levels from 1995, HUGE PROBLEMS IF WE DO.

   Americans will ultimately use less energy, they will be forced too. I live in Hawaii, am paying close to 4$/gallon and its not EVEN APRIL. I own a Prius too, so I could give a fuck personally, and with the 2008 0% capital gains tax level on SOLE SOURCE income under 32K, at least part of my trading income will be free. Remember the Iran Contra scandal, when oil producers tried to FUCK US via energy prices. YEa, we actually screwed them over in a large way, and they backed the fuck off because they realized that we OWN THEM to the tune of 70% usage revenues, and when even a fraction of that comes off, watch out. They cannot and will not pressure energy prices further. They have no need to , when they can just go to Euro reserve, and solve their problems. What they should be worried about is a MAJOR US and UK recession that hints of 90’s Japan and takes years to heal. Energy will fall, and you and I will learn to live cheaper. Human nature says so. Credit expansion over the last 10 years to the insane degree that it has reached, has much to do with the current levels of energy use and other commodity inflation related pieces of our economy. We are over extended, and will now pay the piper. We will end up using less, exporting less, producing less, importing less, and overall just contracting. Its natural and must happen if we are ever to reach the levels of influence and international importance of only 10 years ago. Prices always RISE in the start of such phases, and ultimately CRASH, as no one willingly pays them, nor can afford to. You go ahead and put your money in fools gold. India and China support the major gold complex, and without them, prices would be close to $500/ounce. Treasuries are a much safer bet for return OF CAPTIAL, which should be the focus, not return ON capital. I will trade futures to the short side all year long, and make a killing doing it. No need for gold, or the associated risk tollerance required. The chart is parabolic, and all parabollas end in a tear drop. They just do.

   I think gold is safe for a month of two, but will pull back hard.

10. 10timsykes

    March 16th, 2008 at 9:15 pm

    

    i’ve given in to twitter, too many 1-2 line thoughts i gotta share ALL the time:

    http://twitter.com/timothysykes

11. 11M

    March 16th, 2008 at 9:20 pm

    

    Tim, do you think there will be some good shorting opportunities come monday because of this?

    Also, visa is going public this week, so how do you see this impacting the success of the IPO?

12. 12timsykes

    March 16th, 2008 at 9:23 pm

    

    nope no worthy shorting opportunities whatsoever in penny stock land. i short into hype, ignore everything else.

    visa, i’ve posted several times in the forums

13. 13M

    March 16th, 2008 at 9:32 pm

    

    yeah I know, I posted the question on it, lol. I was just asking if this recent BSC news could impact it. Either the deteriorating consumer confidence in the stock market, or whatever else.

14. 14Shortie

    March 16th, 2008 at 9:39 pm

    

    Short ALL financials and banks….MER, LEH or basket UYG, KRE. Buy SKF!! And ofcourse, sleep well over a month!

15. 15Sizman

    March 16th, 2008 at 9:41 pm

    

    GS to rnviel $3B writedown

16. 16neil(TIMBUCKS: $4)

    March 16th, 2008 at 9:52 pm

    

    I would be very careful shorting financials tomorrow. They may be wrecked long before you and I could get in to short. Having said that, I am short 2k shares of WM. Curious to see how that opens.

17. 17Shortie

    March 16th, 2008 at 10:08 pm

    

    I just wonder why people talk about Jim Cramer?? He is a POS. I can babble 20 or 30 shares everyday, there will be some winner, some loser, what is the difference between Crammer or me?? Or stubborn Karen Finerman in Fast Money who advised to buy CROX when it was tanking or advised to hold TSO when it was crashing. These so called scum gurus are nothing worth to listen unless they have a strategy and agenda. I like Tim lot better after reading his articles, and his method is working perfectly for me! I would still short some pathetic financials at open, they will still make a buck or two downwards within 30 minutes or so in a panic sell, and I will cover.

18. 18neil(TIMBUCKS: $4)

    March 16th, 2008 at 10:11 pm

    

    the people who are mad at Cramer are the ones who listened at face value and don’t do their own homework on top of that. I am not defending him, just saying that people need to take responsibility for their own trades.

    I agree, tims system is much better. He just needs to listen to himself more!

19. 19Tony Ellis(TIMBUCKS: $24)

    March 16th, 2008 at 10:14 pm

    

    Bottom tomorrow?

20. 20James Wilcox

    March 16th, 2008 at 11:57 pm

    

    Can’t say we didn’t see the writing on the wall. BSC has been in trouble for some time now. Gold also hit $1k an ounce this weekend.

21. 21be-the-ball(TIMBUCKS: $25)

    March 17th, 2008 at 12:02 am

    

    Jerry Springer,

    You are misquoting Cramer. His reference is to deposits with Bear, i.e. he is trying to discourage a run on the bank, which did occur. He isn’t talking about the stock…he wasn’t wrong in this case. If you disparage Jim incorrectly you give him ammo to defend all the times he is truly wrong…

22. 22JJ(TIMBUCKS: $72)

    March 17th, 2008 at 12:21 am

    

    have to agree we’re in a MAJOR recession. all the more reason to trade (penny stocks) PS’s. any help from the fed right now won’t be felt through the economy for another 3 - 6 months. though the markets will react right away. let’s face it, gold, oil, wheat, and other goods, are going to continue to go up since the value of the US $ is not worth anything in other countries b/c we’re in too much debt and we just print more money when we need more or lower rates – either way it leads to inflation and decreases the value of the dollar. sure gold can only go so high ($1100+) and if that’s the case why not short the dollar since it’s just going to head lower as the fed cuts rates again and again. so, where’s the value? then we’ve got the housing/mortgage crisis - GO financial institutions and lenders who helped create this mess from all the funky loans with their lack of due diligence. what’d they expect when the markets turned and the bubble burst? everyone knew that wouldn’t last forever. financial institutions will be dealing with this for another 3 to 5 years so don’t expect any quick fixes from the gov’t. mortgage pools are just as greedy and they want their returns. but they’ll be hard pressed to get them as these foreclosures continue at a record pace even after the stimulus package is worked in. I guess that will mean a new high for rentals as more and more people won’t be able to afford the homes they once had and are left with poor credit scores to purchase their next home as well as raising credit card debt from all the bills stacking up. ya, i’d say we can expect the dow to return to 8000 and more significantly the s&p to return back down to 850-900 when consumer spending is stifled because of high inflation in an already beat up and worn out market. only a matter of time before the fed cuts rates below 3% and those retirees who worked so hard for what they have are turning to reverse mortgages since drug costs and prescriptions are exceeding their already slim social security checks. Don’t forget they help drive the economy too. again all that doesn’t matter if your just trading PS’s. there’s opportune in disaster and in good times. who cares when you’re not value investing.

23. 23Mark

    March 17th, 2008 at 12:24 am

    

    It’s even worse for Cramer because he always says don’t speculate on takeovers unless the fundamentals are there.

24. 24puma

    March 17th, 2008 at 12:32 am

    

    SKF tomorrow anyone?

    Tim, i know its outta your pennystocking/chart theory but it seems like a decent play, if not just for tomorrow for the next few weeks….

    anyone agree/disagree?

    …with european/asian markets being down right now (as of 1:32am EST) i can’t see the Dow/S&P/NAS being up tomorrow….even with fed emergency cuts and another meeting/cut tuesday…at best its a 1 day minor rally…

25. 25Mark

    March 17th, 2008 at 1:05 am

    

    Thinking the same thing tonight. even QID bc its more volatile than the other indexes. I thought we were going to tank a week or so ago when all the ugly data came out. I like it but markets work in weird ways sometimes.

26. 26JJ(TIMBUCKS: $72)

    March 17th, 2008 at 1:40 am

    

    Asian stocks plunge after Bear Stearns news
    Nikkei drops 3 percent amid news JPMorgan will buy troubled bank

    http://www.msnbc.msn.com/id/23665425/

27. 27puma

    March 17th, 2008 at 2:12 am

    

    QID was my second choice, i think well see more % gain from the ultrashort financial sector though….

    if you look at friday SKF was up roughly 6% whereas QID was up almost 4%

28. 28Ben Bien

    March 17th, 2008 at 4:09 am

    

    good post, it’s funny that I learned about the rate cut at this website of all places even though my homepage is set to Google Finance

29. 29leo00o83 (Amir)

    March 17th, 2008 at 4:39 am

    

    Tim already said not to get in tomorrow and I can only imagine why - everybody is on the same mindset and there’s too many agendas out there, if you got millions of shares short already, you’d cover TOMORROW if the indexes tank 3,4,5,6,7,8% and it would KILL YOUR SHORTS if you enter tomorrow.

    the odds are against you, wait for another panic Bernanke rate cut effect to spike up and mellow out then enter short.

30. 30Joe

    March 17th, 2008 at 7:39 am

    

    Is COIN going to be a good short this morning?

31. 31woundlicker

    March 17th, 2008 at 8:03 am

    

    Hey fellas, I, Jim Cramer predicted BSC is a take over candidate. But I did not disclose it will be taken over by somebody like JPM for $2/share, ha-ha! So, you all should give me a credit for predicting BSC bought out rumor before hand to you all my loyal listeners. I had also some BSC for my chartiable trust to pump the stock so that my good friends can short it when you fools buy on my pumping on mad money show. Oops, did I say I pump certain stocks so that my close friends can dump the loads or even short when you fools buy at aftermarket price :~(

32. 32lmsmith

    March 17th, 2008 at 8:08 am

    

    I must have luck on my side- I shorted WM and LEH on Thursday…looks like it’s going to be money in the Bank for me today….. gosh I wish I got in on BSC….. ohh well…

33. 33Randy

    March 17th, 2008 at 9:01 am

    

    I was listening to cnbc on my way to work, they mentioned people in the suburbs of NY that were worth $100M last week and are now worth about $2M

34. 34timsykes

    March 17th, 2008 at 9:12 am

    

    already addicted, just twittered:

    i usually ignore the overall market but u gotta love dow only down 70 and the dollar bouncing, maybe all wrongs make a right?

    http://twitter.com/timothysykes

35. 35timsykes

    March 17th, 2008 at 9:18 am

    

    aiming for a rebound on the dip, bought and sold 400 thinly traded GENC for 15 cent gain this morning, didn’t wanna post about out and have to deal with front running issues, the small gain aside, it wasn’t a bad trade, little downside risk, big upside, i’ll have details later!

36. 36Gary

    March 17th, 2008 at 9:30 am

    

    Tim…help me wrap mine brain around this.

    If bear is sold of at $2…

    Why is it trading at $4ish right now? Don’t people see that it losing money. Or am I missing something here?

    Thanks

37. 37timsykes

    March 17th, 2008 at 9:33 am

    

    shareholders have to approve the deal, not done yet…shorts not taking chances, they’re covering. nothing is exact in this game

38. 38Tony Ellis(TIMBUCKS: $24)

    March 17th, 2008 at 9:41 am

    

    Exactly…no way shareholders approve. They’d rather go BK and lose 100% than sell to JPM and lose 99%.

39. 39PA

    March 17th, 2008 at 10:10 am

    

    FYI -Fed cut the discount rate - not the interest rate…

40. 40Erich10

    March 17th, 2008 at 8:16 pm

    

    You know what’s kinda funny, if you look at a very long term bear sterns chart (like from 1995 till now) it’s a perfect supernova chart like the ones Tim talks about :) I guess it counts seeing as it’s a penny stock now lol!

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