Why Don't LEH Suitors Just Buy Shares in the Open Market?
- Thread starter aeliodon
- Start date
the talk now is that LEH is about to be in a 'three-way' with 'several interested suitors'.
this is usually referred to in technical terms as a gangbang.
at last word, the suitors were seen 'jockeying' for their 'asset' of choice.
this is usually referred to in technical terms as a gangbang.
at last word, the suitors were seen 'jockeying' for their 'asset' of choice.
Market can be wrong. Market thought FNM was worth 7 right before the takeover.
Well, personally I have no edge in what corporate events might happen, so it would be pure gambling to hold over the weekend.
I would much rather wait until any announcement, good or bad, then see if there's a potential trade there. For example in BSC, the great trade after the collapse was to actually go long on the JPM announcement. The Monday morning, BSC opened above 2 and then rallied all week and beyond, getting to above $10 per share before the revised bid.
I would much rather wait until any announcement, good or bad, then see if there's a potential trade there. For example in BSC, the great trade after the collapse was to actually go long on the JPM announcement. The Monday morning, BSC opened above 2 and then rallied all week and beyond, getting to above $10 per share before the revised bid.
At this point I don't think you can value these companies. FRE and FNM are sitting as penny stocks right now, they were $70 dollar stocks worth tens of billions, today almost worthless. Do you really think someone is going to pay more than 5 bucks a share. There is no trust left within these companies anymore. The risk they took at the shareholders expense was pathetic. Every one of these firms was filled with greed. How they can be bailed out and helped out by the backing of our tax dollars and help from wallstreet is beyond me. Where is the free market.
They want a piece, they do not want Leh. The liabilities outweigh the piece they want. It would insane to buy Leh at any price. Leh is burning, would you want to burn as well?
The government is saying they will not back those liabilities as they did with Bear. That made the attractive parts of Bear worth it. Not the case here as of yet. So this aint gonna happen. Its not worth 3 its worth 0
Actually the problem isn't 0, it is negative. If it was just 0, those attractive pieces might get a bid on all of Leh. It is negative.
Look at Bac eating all the negative for an attractive business. The negative has far outweighed their purchase. They wish Countrywide was 0, it is much worse.