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Banking, finance, and taxes

Is Bear Stearns Worth More Than $90 A Share?

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By Douglas A. McIntyre Published
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Joseph Lewis, one of the world’s richest men, has bought more shares in Bear Stearns (BSC), and now owns more than 9.5% of the company, according to Reuters. The questions is, is he smarter than almost everyone else? Shares of BSC have dropped from over $172 to $89 this year. The prevailing wisdom is obviously that the investment bank will not recover from its write-offs any time soon.

For Mr. Lewis to be right, the markets would have to come to view Bear Stearns more like they do Lehman (LEH). Its shares are only off 15% to 45% for BSC. That would bring Bear Stearns’ stock price closer to $150.

For the time bring, Mr. Lewis does not look terribly astute. But, patience may end up being his friend. The shares in the company made a big move from 1991 to 1992 after Wall St. had a rough patch. Lewis must hope history will repeat itself.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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