The Bear Stearns Companies Inc. (NYSE: BSC) announced that will host a conference call today at 12:30 P.M. EST. The stock is now down more than $23.00 to under $34.00 and shares actually traded under $30.00 this morning on the reception of the Fed/JPM bailout. The Fed has already tried to issue statements to address market speculation regarding its announcement this morning. Unfortunately, with the volume seen in put options this week and with all of the rumors and actual instances where counter-parties refuse to accept Bear Stearns collateral, this just added to fears that the firm was going to implode whether it deserved to or not.
The company will also announce its first quarter 2008 financial results on Monday, March 17, 2008, after the market close of the market.
Calling this volatile or calling it critical is something that words really can’t say. We noted earlier in our first story today on this matter "If you want to know what the brink of disaster looks like at a major financial institution, this is it." That hasn’t changed, at least not any better from before the point that the rug was yanked out from under this stock.
As a reminder, even if a buyout comes there can be no assurance it will be at any sort of premium. Unfortunately, Bear Stearns no longer has any control over its destiny.
Jon C. Ogg
March 14, 2008