Jim Cramer on Bear Stearns Tuesday March 11

Tuesday with BSC at $62.97, Jim Cramer took a call from a viewer asking about Bear Stearns liquidity problems. This was his reply.

• Caller Question: Should I be worried about Bear Stearns in the terms of liquidity and get my money out?
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• Jim Cramer: NO! NO! NO! Bear Stearns is fine. DO NOT take your money out.

(See the video of Jim giving this advice below the BSC chart.

Currently at 11:29AM ET: BSC is $4.16, down $25.84 or 86.13%

Date      Open  High   Low Close Volume   Adj Close*
14-Mar-08 54.24 54.79 26.85 30.00 186,885,800 30.00
13-Mar-08 57.64 58.60 50.48 57.00  70,720,800 57.00
12-Mar-08 65.50 67.82 61.35 61.58  26,803,300 61.58
11-Mar-08 68.02 68.24 55.42 62.97  54,966,600 62.97
10-Mar-08 70.28 70.59 60.26 62.30  32,465,300 62.30
07-Mar-08 68.71 73.00 68.30 70.08   8,034,400 70.08

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Not even an "Oops, I was wrong" from Cramer on Friday's Mad Money.

I respect Jim for trying to teach people about diversification, but the idea has any more of a clue what is going on with stocks than anyone else is wrong.

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J.P. Morgan Chase buys Bear Stearns for $2 a share

Tonight, Sunday March 16, 2009, J.P. Morgan Chase announed a deal to buy Bear Stearns (BSC) for $2 a share in a stock-swap transaction that values BSC at just $236 million. On Friday March 14 Bear Stearns closed at $30 a share, down $27 or 47% from Thursday after it announced it had liquidty issues.

At Friday's closing price of$30 per share, BSC was supposed to have a book value of $84 a share.

For a financial company that charges others to manage risk to fall from a high of $170 to $2 a share in just over a year is simply amazing.

Think of all the people who trusted people at Bear Stearns to manage their money... and the company couldn't manage its own risk as a going concern!

One word: Pathetic!

At Friday's Closing price of $30 per share, Bear Stearns had the following key statistics as listed by Yahoo! finance:

Market Cap: $4.08B
Trailing P/E (ttm, intraday): 19.70
Forward P/E (fye 30-Nov-09) 1: 3.34
PEG Ratio (5 yr expected): 0.45
Price/Sales (ttm): 1.31
Price/Book (mrq): 0.68

Bogus Balance Sheet Numbers:
Total Cash (mrq): 266.94B
Total Cash Per Share (mrq): 1,960.529
Total Debt (mrq): 229.46B
Total Debt/Equity (mrq): 19.457
Current Ratio (mrq): 1.17
Book Value Per Share (mrq): 84.03

RIP