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
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