Derek Dizhi Huang

http://www.myspace.com
Total Rating:
0 / 0

4 Comments

    • Thu Mar 20th 16:20 PM | Rating: 0 0
      Commented on:
      Bear Stearns: Why It's Safe to Bet Against Joe Lewis
      BSC just announced their preferred shareholders dividends, in this transition period, BSC management is using up whatever cash they have on hand, so that when the time comes, $2 deal becomes a good deal when BSC has no more cash on hand (WHAT A PLOT!). It will mean only one thing, when BSC structured this deal, they still have ample of cash (to pay for preferred shareholders). I just wonder if it can be considered defrauding the common shareholders. Well the shareholders of BSC will find out from their attorney.
      View article »
    • Thu Mar 20th 10:09 AM | Rating: 0 0
      Commented on:
      Why Bear for $5 May Make Sense
      If the $2 deal went through, 420 instutional clients will take a hit because there are that many holding Bear Stern's stocks at at least $80 to $100/share. If the deal went through, all 420 institutions will take a hit (assumed they holds 250,000 shares of Bear Stern at $80/share), we are talking about $40 millions in red on their balance sheet. Those include Morgan Stanley, Vanguard, Janus Capital Management, and many other funds each holding at least 655,000 shares at $80/shares at least. Morgan Stanley by Dec 7, 2007 still holds 6,500,000 shares at $80/share, equals about $500 millions. If it went through by $2 deal, it will be $13 millions in return for $500 millions in cost to Morgan Stanley. But this is only one company, just think, when this $2 deal went through, by the end of the year, it will reflect on all 420 institutions balance sheet with a hit of $40 millions, and how do funds operate, they have to increase asset value (NAV) and returen to attract new investors. When they take the hit, it will mean lower NAV, and most investors will not stay around to wait for the drop in their investment, the investors will redempt, the funds will run out of cash, and instead they will have to sell off the fund's portfolio at a discount to come up with the cash for investors redemptions. When all 420 institutions or funds are all selling at the same time, all stocks will be down, and possibly lead to a market crash as well, and when the US market is not stable, the worldwide market will be affected as well. It is a ripple effect which will affect every single household whether they own the stock or not (because when the stocks are down a lot, some companies will start to lay off people as well). As of today, there are 2 pending class action lawsuits filed against Bear Stern's for the $2 deal. And New York City Comptroller Thompson also has filed another investigation because City retirement fund has $10 millions in Bear Stern's stocks. Joseph Lewis (the largest single shareholder of Bear Stern) already said he will fight the deal. If the $2 deal went through, it will be like setting a TB in the US and by the end of the year, it will pop. We need to protect our investments and our jobs too. While all the online stock watchers are talking about bondholders are buying BSC in order to make sure the $2 deal went through. But when the entire stock market are hit, what makes you think a lone bank JP morgan Chase can survive the worldwide drop? Both Senate and House already initiated an investigation on this $2 deal. It is the truth I am telling and it is just like the "Next" where I can already see what will happen at the end of the year. May God The Father protect us all...
      View article »
    • Wed Mar 19th 14:21 PM | Rating: 0 0
      Commented on:
      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.
      View article »
    • Tue Mar 18th 15:03 PM | Rating: 0 0
      Commented on:
      Explaining Bear Stearns' Current $7 Price
      ALthough it sounds like $2/share is a good deal, but if you look under Yahoo.com, Major Shareholders, we will see most of the institutional investors and major shareholders are holding BSC at above $80/shares. Are they going to go for scrap value of $2/share BSC or will they try to find a possible turnaround situations? There are analysts sending out negative news, why, because they want to drive down the price as well. There is a still high chance the investors will vote NO to $2/share. I am betting some of my IRA on BSC for a possible turnaround situation.
      View article »
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»