Posts filed under “M&A”

Buffett Sell Signal

Call it revenge of the rumor mongers: So far this year, Warren Buffett has been wrongly named as an acquirer seven times. In five of those instances, the stocks are now lower, with all but one down considerably.

Last week, we noted how unlikely it  was (Buffett to Buy Bear? Bull$%*#) that Buffett would be an acquirer or even a major investor in Bear Stearns (BSC).

False rumors are no basis for an investing strategy — but this pattern, according to Bloomberg’s David Wilson, suggests that Bear Stearns has more downside to come:

"Speculation that Warren Buffett would come to the aid of Bear Stearns Cos., the fifth-largest U.S. securities firm, may be a signal to sell its shares.

Bear Stearns is the seventh company named as a potential target for an investment or acquisition by Buffett’s Berkshire Hathaway Inc. this year, Bloomberg News reports show. There’s no evidence so far that the billionaire investor followed through on any of the others, and the reticence allowed him to avoid losses.

Five of the companies — USG Corp., New York Times Co., Zurich Financial Services AG, Hovnanian Enterprises Inc. and Countrywide Financial Corp., in that order — trade at lower prices now than they were when the speculation surfaced . . ."

These rumored companies have fallen from 7.2% to down 41%:

 

Company Performance since Buffett Rumor
Zurich Financial Services -2.5%
Countrywide Financial -13%
New York Times -26%
USG Corp. -35%
Hovnanian Enterprises Inc. -41%

 

Wilson adds: "As the fourth quarter unfolds, Bear Stearns shares may be fated to fall."

Indeed . . .

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Source:
Buffett Sell Signal, Trading-Only ETF, Starbucks Call
David Wilson
Bloomberg, Sept. 28 2007
http://www.bloomberg.com/apps/news?pid=20601039&sid=aLktOvGugNN0&

Category: Corporate Management, Financial Press, M&A, Psychology, Trading

Buffett to Buy Bear? Bull$%*# !

Category: Corporate Management, Derivatives, Financial Press, M&A, Valuation

New Project(s)

What a crazy week — and the market is the least of it!

We moved from our old space on Park Avenue & 49th (across from
the Waldorf) to larger quarters a few blocks over on 5th Avenue. I have been switching back and forth between Starbux and Bryant Park for internet access (and posting less because I have been out of the office more than in). The
furniture is in, the phones are hooked up, and tomorrow, rumor has it
Verizon will light us up with a big fat pipe, connecting us to that
series of tubes.

But what’s been really odd is that a dozen seperate projects I have been working on for a few years now — some big, some small, all eclectic — have practically all-at-once, simultaneously, lurched towards fruition.

These include:

A major media project

I may join a new BoD

A fun little web project (its potentially very, very funny)

A significant quant application (this is a very powerful tool)

A brand new video venture

Two fascinating blog related advertising concepts

An expansion of an earlier book blogging idea

A new private equity fund 

And that was just this week!

We will discuss more about these in the coming weeks; Just about all of them have a market/stock/economic component to them. I’ll keep you up to speed with these as they develop.

I expect/hope that at least 3 of these 7 close before Halloween. . .

Category: Digital Media, Hedge Funds, M&A, Video, Weblogs

E*Trade/TD Ameritrade?

Category: Corporate Management, Investing, M&A, Trading

Credit-Market Tremors

Category: Credit, Derivatives, Finance, M&A, Markets

Yahoo! Gone in 12 Months?

Category: Corporate Management, Finance, Financial Press, M&A

M&A Frenzy

Category: Corporate Management, M&A, Markets, Psychology

Microsoft eyeing Yahoo?

Category: Corporate Management, M&A, Web/Tech