Wednesday, July 18, 2007

Bear Steans (BSC)


It managed to rise from the ashes of quite a slide in after hours trading Wednesday. You could really say that Bear was up today by $5 bucks from its lows of late yesterday.

To some extent the demise of the alphabet subprime fund was a sure thing and that Bear (BSC) is now on the hook for some bigger bucks and will likely face quite a bit of litigation.

What I found intriguing was the decent volume on the call side of the Bear options chain. While it wasn't all buying, there was enough buying from what I could decipher in the time and sales data to see that a number of folks think there's upside in Bear's share price. There was enough volume in the August 140 and October 155 calls for volume to exceed open interest.

If Bear's situation deteriorates further through a management shakeup, or more problems, this name could indeed be a takeover name... just a quick late evening thought.

Disclosure: I hold no position in the stocks I write about, though I do own Ace Greenberg's great book, Memos from the Chairman.

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