Bear Stearns In The News

Originally published In The News 7/10/07

Chatter over the future of Bear Stearns (BSC-NYSE) has been swirling about.  Has the stock’s pullback from its ‘07 highs compressed the valuation enough to make Bear a hunted animal?  There are many moving parts to this story.  For starters, making sense of Bear’s balance sheet and in particularly, the liabilities section, is best left to financial sector specialists. What exactly is the enterprise value of Bear here?

Too, A good drubbing always sets off intrigue the corner offices.  Warren Spector recently gave the Asset Management troops a pep talk, but the Cioffi episode likely dimmed his star.  But don’t underestimate him.  What did not kill him made him stronger, and like all good bridge players he learns from his mistakes.  Warren is scary smart, and would likely crush any attempt at a palace coup. 

By the way, he seems to be standing pat with his Bear stock....unlike Ace who really really hit the bid at the beginning of the year.  Click on the insiders tab below and check out the sales.  Ace got his piece off at $163.11....while there might be liquidity issues in the the market for sub-prime paper, there are none in Greenberg’s house.  $24 million buys a lot of paper clips. 
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