Monday, March 17, 2008

Jim Cramer: "No! No! No!" Don't Sell "Bear Stearns is not in trouble!"



Jim Cramer, March 11, 2008, reading "Mad Mail":
Cramer:
Peter writes, 'Should I be worried about Bear Stearns in terms of liquidity and get my money out of there?'

(screaming, of course) No! No! No! Bear Stearns is fine! Do not take your money ou.. -- This is rea.. -- If there's one takeaway other than the plus four hundred (garbled). Bear Stearns is not in trouble! I mean if anything, they’re more likely to be taken over. Don’t move your money from Bear! That's just being silly! Don't be silly!

When Cramer said that Bear Stearns was still trading at over $60 a ahare.

The news, six days later:

JPMorgan to Buy Bear Stearns for $2 a Share
(Reuters) JPMorgan Chase & Co said on Sunday it would buy stricken rival Bear Stearns (nyse: BSC - news - people ) for just $2 a share in an all-stock deal that values the U.S. investment bank at the centre of the credit crisis at about $236 million. [...]

Bear's stock closed on Friday at $30.85, valuing it at $3.5 billion, after tumbling 46 percent that day. Shares in the fifth largest U.S. investment bank hit a record high of more than $171 in January 2007...