Official Let's Make Some Money Off Stocks Thread
09-14-2008, 10:48 PM
#991
Administrator
Thread Starter
LEH declared Chapter 11 today. I get the notice from the WSJ at 1AM.
In other news BofA swapped $50B in stock for 100% of of Merrill Lynch. LEH going belly up is no surprise in fact CNBC Fast Money's Karen Finerman said LEH was a steaming pile since last year and has been short it just as long and made no secret.
What is interesting is BofA's $50B all-stock offer for Merrill. WTF? They dropped a couple $B into Countrywide before it went down the pooper and now they are trading $50B of stock valued at 1/2 it's normal price so basically $100B for Merrill with an enterprise value of -$100B and a book value of right around $28B.
Something is fishy when a company trades a massively devalued currency for a pretty much worthless company. The seem to have learned investing at a weekend seminar.
In other news BofA swapped $50B in stock for 100% of of Merrill Lynch. LEH going belly up is no surprise in fact CNBC Fast Money's Karen Finerman said LEH was a steaming pile since last year and has been short it just as long and made no secret.
What is interesting is BofA's $50B all-stock offer for Merrill. WTF? They dropped a couple $B into Countrywide before it went down the pooper and now they are trading $50B of stock valued at 1/2 it's normal price so basically $100B for Merrill with an enterprise value of -$100B and a book value of right around $28B.
Something is fishy when a company trades a massively devalued currency for a pretty much worthless company. The seem to have learned investing at a weekend seminar.
09-14-2008, 11:39 PM
#992
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Originally Posted by cthree,Sep 14 2008, 10:48 PM
LEH declared Chapter 11 today. I get the notice from the WSJ at 1AM.
In other news BofA swapped $50B in stock for 100% of of Merrill Lynch. LEH going belly up is no surprise in fact CNBC Fast Money's Karen Finerman said LEH was a steaming pile since last year and has been short it just as long and made no secret.
What is interesting is BofA's $50B all-stock offer for Merrill. WTF? They dropped a couple $B into Countrywide before it went down the pooper and now they are trading $50B of stock valued at 1/2 it's normal price so basically $100B for Merrill with an enterprise value of -$100B and a book value of right around $28B.
Something is fishy when a company trades a massively devalued currency for a pretty much worthless company. The seem to have learned investing at a weekend seminar.
In other news BofA swapped $50B in stock for 100% of of Merrill Lynch. LEH going belly up is no surprise in fact CNBC Fast Money's Karen Finerman said LEH was a steaming pile since last year and has been short it just as long and made no secret.
What is interesting is BofA's $50B all-stock offer for Merrill. WTF? They dropped a couple $B into Countrywide before it went down the pooper and now they are trading $50B of stock valued at 1/2 it's normal price so basically $100B for Merrill with an enterprise value of -$100B and a book value of right around $28B.
Something is fishy when a company trades a massively devalued currency for a pretty much worthless company. The seem to have learned investing at a weekend seminar.
09-15-2008, 07:34 AM
#998
Registered User
Did you guys catch any of the BoA/ML interview this AM? BoA didn't want anyone else to snatch ML first. But I agree they could have gotten a better deal. I think it is better for our economy to sort these failures out sooner than later. So would someone please stuff LEH and AIG into their shopping cart already?
I thought BoA was nuts when they got CW, as Cthree mentioned, but it sounds like the bad debt is working out and that deal is nothing but good for BoA (not proven yet, but that's the noise). They just gained huge future mortgage martket share. That won't stay a losing business forever.
I'm thinking the same for the ML deal. BoA wanted to get into investment banking forever (Ken said he predicted commercial banks would get into it for seven years now). Cramer is nothing but positive on BoA in the past couple of weeks.
Seems like a good long-term buy opportunity this AM on BoA stock!
I thought BoA was nuts when they got CW, as Cthree mentioned, but it sounds like the bad debt is working out and that deal is nothing but good for BoA (not proven yet, but that's the noise). They just gained huge future mortgage martket share. That won't stay a losing business forever.
I'm thinking the same for the ML deal. BoA wanted to get into investment banking forever (Ken said he predicted commercial banks would get into it for seven years now). Cramer is nothing but positive on BoA in the past couple of weeks.
Seems like a good long-term buy opportunity this AM on BoA stock!
09-15-2008, 09:29 AM
#1000
Registered User
Originally Posted by Penforhire,Sep 15 2008, 07:34 AM
Did you guys catch any of the BoA/ML interview this AM? BoA didn't want anyone else to snatch ML first. But I agree they could have gotten a better deal. I think it is better for our economy to sort these failures out sooner than later. So would someone please stuff LEH and AIG into their shopping cart already?
I thought BoA was nuts when they got CW, as Cthree mentioned, but it sounds like the bad debt is working out and that deal is nothing but good for BoA (not proven yet, but that's the noise). They just gained huge future mortgage martket share. That won't stay a losing business forever.
I'm thinking the same for the ML deal. BoA wanted to get into investment banking forever (Ken said he predicted commercial banks would get into it for seven years now). Cramer is nothing but positive on BoA in the past couple of weeks.
Seems like a good long-term buy opportunity this AM on BoA stock!
I thought BoA was nuts when they got CW, as Cthree mentioned, but it sounds like the bad debt is working out and that deal is nothing but good for BoA (not proven yet, but that's the noise). They just gained huge future mortgage martket share. That won't stay a losing business forever.
I'm thinking the same for the ML deal. BoA wanted to get into investment banking forever (Ken said he predicted commercial banks would get into it for seven years now). Cramer is nothing but positive on BoA in the past couple of weeks.
Seems like a good long-term buy opportunity this AM on BoA stock!