Bear Stearns fell $27 on Friday to close @ $30 and worth $2 tomorrow.

[Poker]

well your stop should be in a place that will prevent a margin call Really you shouldn't even enter the trade unless you can cover the risk...this is essentially what Stearns did on a huge scale eh? As far as a target goes (where to cover) you can let the market take you out thru the use of trailing stops.

 

[Area52]

Shorting stocks.
http://www.fool.com/FoolFAQ/FoolFAQ0033.htm

 

[Gerry]

Really you shouldn't even enter the trade unless you can cover the risk...this is essentially what Stearns did on a huge scale eh?

OOOoo! Ouch...the one-two knock out punch!

That is exactly what happened.

And tried their best to hide it from employees, shareholders, and investors.

 

[Poker]

yep...what did you know and when did you know it

That's one of the main reasons technical analysis is so sweet...like video of a crime, charts don't lie.

 

[Gerry]

yep...what did you know and when did you know it

That's one of the main reasons technical analysis is so sweet...like video of a crime, charts don't lie.

I imagine we'll see quite a shakeup in the post-purchase when the dust settles and look at when and by who shares were sold.

I can not imagine that someone like their former CEO Jimmy Cayne (ousted a couple of months ago after one of their top funds collapsed) would let his shares valued at $900 million dollarscollapse like their number one fund.

And this right here is enough to put people behind bars (pay particular attention to the date):

http://money.cnn.com/2008/03/12/news/companies/bear_stearns.ap/index.htm?section=money_latest
Bear Stearns CEO: We'll meet estimates
Investors cheer after Alan Schwartz says the bank has a $17 billion safety net and its liquidity remains intact.

March 12, 2008: 12:52 PM EDT

NEW YORK (AP) -- Shares of Bear Stearns Cos. leaped Wednesday after the investment bank's chief executive said he is "comfortable" that the company's profit will fall within the range of analysts' estimates for the first quarter.

In an interview with CNBC, Alan Schwartz said he expects Bear Stearns fell within the range of estimates that analysts on Wall Street forecast for the fiscal first quarter, which ended last month.

Analysts' expectations for profit range from 46 cents per share to $1.61 per share.

Schwartz also denied rumors that the company's liquidity is under threat. Bear Stearns still has a $17 billion cushion against losses, he said.

"Our balance sheet has not weakened at all," he said. "We don't see any pressure on our liquidity."

Bear Stearns' (BSC, Fortune 500) stock spiked $3.33, or 5.29%, to $66.30 in morning trading Wednesday. The shares have traded in a range of $55.42 and $159.36 in the past year.

 

[Focus]

Famous last words from the piece o' chit..

 

[jasdon11]

And this right here is enough to put people behind bars (pay particular attention to the date):

http://money.cnn.com/2008/03/12/news/companies/bear_stearns.ap/index.htm?section=money_latest
Bear Stearns CEO: We'll meet estimates
Investors cheer after Alan Schwartz says the bank has a $17 billion safety net and its liquidity remains intact.

March 12, 2008: 12:52 PM EDT

NEW YORK (AP) -- Shares of Bear Stearns Cos. leaped Wednesday after the investment bank's chief executive said he is "comfortable" that the company's profit will fall within the range of analysts' estimates for the first quarter.

In an interview with CNBC, Alan Schwartz said he expects Bear Stearns fell within the range of estimates that analysts on Wall Street forecast for the fiscal first quarter, which ended last month.

Analysts' expectations for profit range from 46 cents per share to $1.61 per share.

Schwartz also denied rumors that the company's liquidity is under threat. Bear Stearns still has a $17 billion cushion against losses, he said.

"Our balance sheet has not weakened at all," he said. "We don't see any pressure on our liquidity."

Bear Stearns' (BSC, Fortune 500) stock spiked $3.33, or 5.29%, to $66.30 in morning trading Wednesday. The shares have traded in a range of $55.42 and $159.36 in the past year.

If this guys stays out of prison (or alive), it'll be a miracle!

Too young to die - too stupid to live....

 

[PRED]

If this guys stays out of prison (or alive), it'll be a miracle!

Too young to die - too stupid to live....

Here's hoping.................someone gets their hands on him.
Although, i'm guessing he will will keep hold of tens of million himself.
He prob wont even leave country. Bet he's filmed playing golf with the arseclown from the whitehouse next week.

 

[Gerry]

Here's hoping.................someone gets their hands on him.
Although, i'm guessing he will will keep hold of tens of million himself.
He prob wont even leave country. Bet he's filmed playing golf with the arseclown from the whitehouse next week.

It is incredible how people can do this. Claiming they had a $17 billion cushion when they were actually $30 billion in the hole.

He probably immediately walked out of this press conference into the Feds office and signed papers for a bail out.

How bold, brazen, and ballsy some people can be is beyond comprehension. This was an attempt to reassure staff, employees, fund managers, and investors that all was all right. Falsely inflated stock, even if for a day, to hurry up and dump it before the bottom fell out.

Not only did the company loose billions, investors and employees lost billions in pension funds and retirements. This has got to be criminal.

You should google images for their downtown Manhattan headquarters. This is what they were talking about with JP Morgan only paying 230 million for the entire company. Their headquarters building alone is valued at over $750 million.

 

[jasdon11]

Over the next couple of years, how many people will commit suicide due to the fall out from this? It may sound dramatic, but a lot of peoples lives will be thrown into turmoil, so I don't think it's unrealistic.

People get shot every day for the price of a cup of coffee, and less.

 

[H2FC]

Shorting a stock is when an investor borrows a certain number of shares from their broker and sells it (shorts it) at the current price. They do this when they have reason to believe the stock price is going down. When (and if) the share price does fall to a level they believe to be the bottom, they will buy the shares back at the lower price and they will be automatically returned to the broker. The broker doesn't have to actually own these shares....they simply borrow the shares from other investor accounts.

The investors profit is the difference between the selling price and the buying price. This is an automatic procedure known as "shorting" and anyone can do it who has the necessary back-up capital in their account and has been approved by their broker for such trading.

 

[tonyfloyd]

my buddy's (floor trader at Bear Stearns) email response to my asking "what's going on with Bear?" on Friday....at 11 am..."WE"RE DONE!"

 

[jasdon11]

my buddy's (floor trader at Bear Stearns) email response to my asking "what's going on with Bear?" on Friday....at 11 am..."WE"RE DONE!"

Damn it Tony - next time you get some info like that, spread the love, man....

 

[tonyfloyd]

Damn it Tony - next time you get some info like that, spread the love, man....

might cost you a few one word generic.com's.....

 

[jasdon11]

might cost you a few one word generic.com's.....

 

[Gerry]

my buddy's (floor trader at Bear Stearns) email response to my asking "what's going on with Bear?" on Friday....at 11 am..."WE"RE DONE!"

That has got to be a horrible feeling.

 

[tonyfloyd]

That has got to be a horrible feeling.

a great feeling if u are on the receiving end of that...

 

[sashas]

holy shit guys! This seems to be one giant mess...

Wasn't Bear Stearns the 5th largest financial institution there? $150 to $2 is a BIG drop

And because of the US recession, countries around the world are feeling the heat. The Indian stock market fell by more than 25% in the past one month...

 

[tas38]

I lost over 2 years savings on flagtelecom, I got the shares for my kid and I rode it all the way down to 0.0. Every sign was great and the CEO said it was going great, and that they would hit profit early even. Even when the CEO said they was filing BK, he made it sound like it would help our stock, most of us done the research, indeed flagtelecom was not in need of going BK at all.

And indeed it would of but then people looked at the BK plan, stock holders got nothing and they claimed the fiber was worthless. Yes they claim that fiber optics from SEA to shining SEA, was worthless and the judge went along with that. I guess the fiber optics comcast have are worthless as well, and the ones verizon have across the USA are as well.

Seeing how flagtelecoms was from sea to shining sea, and the only such one how could a judge agree they was worthless. They was the only connection many country's had, to other country's with contracts with flagtelecom. Our lawyer told them if it was worthless, then why don't they give us a few shares of the new one. Flagtelecoms answer that by saying, well if they feel that way they can buy some of the new stock.

The judge did not even look at the stuff, and order the trusty look at it and the trusty was from the bank. That setup the fake BK and was to be part owner, our lawyer pointed out to the judge they had the funds, to pay the bills until they hit profit a few months later.

It was easy to see what they don't, they loans billions and got billion on stock shares. Went and builded the fiber lines, then a few months before they was done setup deals. To stop payment to the bank, and the bank had most of their money bank already, took a big chunk of the new teleco. Funny how flagtelecom was in with tyco fibers, they even investest some in flagtelecom. And was going to do more, then all of a sudden tyco had big problems.

When you start looking at all the teleco's the went BK, you soon see a partern with them. And the banks are the same few, and the same kind of scams going on. And the same few banks, was also doing shady BK with other big biz. Claiming they was worthless, when in fact they was worth lots of money. The stock was worthless and stock holder lost everything, everyone else come out great CEO getting millions in bonus.

And the only reason the bush admin went after them, was because the gov't lost a big chunch of the retirement savings. The bush admin was to busy making their big oil bubby's richer. And having to much fun playing war games, and playing world wide terrorist witch hunts. And making the war games into holy war games, it worked wonderfully for the bush admin. And that is how we are where we are, and the rich got much richer, and the middle class is going away very fast.

 

[Poker]

Damn it Tony - next time you get some info like that, spread the love, man....

If it helps you feel any better there was no way to anticipate on Friday that Mon would be so ugly for BSC (unless you were in on top level inside info)...it would have been reasonable to sell on Fri but going short after fri morning would have been pretty risky as a much larger offer could have come in over the weekend...