Tuesday, March 13, 2007

Investing the Middle Way: NEW and Bear Stearns Scott R. Coren Upgrade?

"According to this NY Times article published on Sunday, Mar. 11,
The Bear Stearns analyst who upgraded New Century, Scott R. Coren, wrote in a research note that the company’s stock price reflected the risks in its industry, and that the downside risk was about $10 in a “rescue-sale scenario.” According to New Century, Bear Stearns is among the firms with a “longstanding” relationship financing its mortgage operation. Mr. Coren, through a spokeswoman, declined to comment.
Hmmm, are you thinking what I'm thinking? It can't be that Bear Stearns was trying to cover its own behind with that upgrade, can it? The question on everyone's mind should be, "How much are they on the hook for?"
My brokerage could find any IAI for me to short, so instead I shorted Bear Stearns (BSC) and Merrill (MER) today. Major Wall Street investment banks are reporting this week, to be led off by Goldman Sacks (GS) tomorrow morning. It's going to be interesting!"

3 comments:

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