Hold tight for 4th quarter write downs! Thursday, December 27, 2007
Posted by ei-forum in Miscellaneous.trackback
After the Sovereign Investment Funds recent interest in US banks, Joseph Lewis, has bought more Bear Stearn shares taking his ownership stake to 9,5% but most commentators have reacted by saying that his was not a very smart move as we still haven’t heard all the bad news in the financials.
Goldman has just raised 4th quarter write-down estimates for:
- JPMorgan from 1,7 billion to 3,4 billion
- Citi from 11 billion to 18,7 billion
- Merrill from 6 billion to 11,5 billion
Are the commentators right or is it Lewis – on of the world’s richest men and a very successful businessman/investors?
The truth is probably somewhere in the middle. We feel that the market commentators are taking short-term view, whilst Lewis will definitely be sitting on a healthy profit in a 2-3 year horizon.
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CHECK THE 13D FILING – LEWIS SOLD PUTS AND WAS CONTRACTUALLY BOUND TO BUY THE STOCK. A STRATEGY TO LOWER HIS COST BASIS BACKFIRED! HE’S NOT A HAPPY CAMPER.