So Much For That Theory

Joe Lewis, just another billionaire, made headlines earlier this week after taking down a big slug of Bear Stearns (BSC-NYSE) stock.  The move sent tongues a waggin’, but the New York Post is reporting that Joe is far from an activist. However, he is one of Jimmy Cayne’s bridge buddies:

Former currency trading superstar Joseph Lewis, whose roughly 8.1-million-share stake in Bear was disclosed Monday, is a personal friend of Bear Stearns Chief Executive James Cayne and has frequently played bridge with him, a source told The Post.

Also, Lewis has long had an account at the firm and executed trades using its trading desks. New York Post

The move should put a block of stock in hands friendly to Jimmy. But, is Charlie Gasparino’s report last Friday is to be believed, some sort of palace coup is brewing behind the scenes.

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.

Do you think Warren Spector will dial in for the call?

LEWIS RAISES CAYNE
New York Post
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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 positions in stocks mentioned.

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