A few years ago — around 2001-02 — I had strongly recommended Bear Stearns (BSC).
They had a great franchise, they had lagged the rest of the banking sector for no apparent reason, and overall, the quality of management under Ace Greenberg seemed to be terrific. The stock was $54-57.
Subsequently, Bear ran to $170+. I have long since been gone from the stock.
Today, we witnessed it complete the round trip as it careened through that $54-57 range. At one point, today, Bear was down $10, on a rumor that they were going to go belly up.
But that rumor raises a more interesting question: What companies could take the long dirt nap? Who out there is ripe to be absorbed, merged, taken over (hostile or not). There has to be a long list of mortally wounded firms out there that simply haven’t keeled over yet. What CEOs are dead men walking? What stocks are waiting to be euthanasized?
What say ye?
(I want names and stock symbols!)