More B.S. Buffett Rumors?

Is Warren Buffett poking around under the hood at Bear Stearns Corp. (BSC-NYSE)? Maybe, although if our memory serves us right, he was going to buy Hovnanian Enterprises two months ago.

Hovnanian Enterprises Inc. shares jumped the most since December 2004, leading homebuilders higher, on speculation Warren Buffett’s Berkshire Hathaway Inc. may buy a stake in the company. Buffet Rumors Bogus

Some people are kicking the tires, but Buffett might not enter the fray. The stock held support a few weeks ago, as we noted on September 12th: Too, it was the most attractive valuation, particularly on a price to book basis, in many years.

We have no clue what is going on, but it looks like Bear’s stock has held the crucial $103 level for now. If the stock cracks and trades into the $80’s Jimmy might be forced to fall on his sword.

But that is unlikely. The stock’s valuation has not been this attractive in years.  A lot of bad news has been priced in, and if they can orchestrate the next conference call better than the call they held to discuss subprime issues, the stock just might lift. So Much for That Theory

Charlie Gasparino has been saying for some time that Jimmy Cayne was looking to raise outside capital, but also that some at the firm wanted Cayne’s head on a platter.

“I obviously didn’t take a survey of the entire firm, but I spoke to plenty of key people there, and there is a lot of dissension there.” The Cayne Mutiny

Fair warning, Dick Bove might behind some of the speculation. Be careful out there.

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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Position BSC

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