Derek Dizhi Huang

Bear Stearns Share Price - It's Not Speculators

According to Yahoo.com online, under major shareholders list, there are 420 institutions (mostly funds) holding chunks of BSC stocks. All the stocks were bought at least $80/share, say one of them hold 250,000 shares, it equals $40 millions. Just think for a minute, if the deal with JPM went through at $2/share, what will happen at the end of the year??? All those funds will get hit with $40 mil on their balance sheet, it will mean significantly lower in NAV, which means there will be a lot of redemption coming from the investors, by the end of the year. The future ripple effect is scary even to think about it. $2/share is a salvage value. But this deal is stock for stock exchange, it does not help BSC at all, in terms of cash vice, besides that $30 billions guarantee from Fed. Our 420 institutions will be hit severely if this deal go through and there are already class lawsuits pending now, voting against this $2 deal. The shareholders may vote no, even the rumors says the bond holders are buying.