Bear Stearns (BSC)
Quarterly Revene Growth 17.5%
Gross Margin 95.32%
EPS 13.182
P/E 11.85
BSC, in comparison to its competitors has the 2nd higher revenue growth, 2nd highert EPS and lowest P/E ratio. Bear continues to purchase companies in prime mortgages. They are still expanding in Europe at a decent clip.
What do you all think? Is it Under/Overvalued or perfectly priced??
2006-11-21 10:19:49 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
I actually bought this stock at 136.09, two days before they released their earnings in September. So far, I have had a ~15% gain with BSC. I plan on holding this stock until brokerages begin to lose their ground.
I think, what my real question should be. Why isn't Bear selling at a higher P/E than GS, LEH, or MER considering its better margins, higher growth rate and higher earnings compared to its competitors.
Thanks,
Mac
2006-11-21 10:34:49 · update #1
P.S. sorry for my grammar and spelling, I am at work, doing my stock research :)
2006-11-21 10:38:49 · update #2
What timeframe are you interested in trading it? Long term (> 3 mo) or shorter term?
BTW, BSC is in a strong sector which just broke out again last week. GS is one of the leaders in the sector and went from 184 to over 199 in about a week.
I'll add more later once I get a better feel what you're looking for.
Nov 21, 2006
2006-11-21 10:28:22 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
BSC has a high debt/equity ratio. This is the ratio of their debt to stockholder equity (what the stockholders provided at the IPO). Currently, it's 15.116 on Nov. 21 after trading hrs. This means that they used 15 times as much debt as they did money from shareholders. Total debt, is over 177 billion, and their revenue is only 8.7 billion. They have over 239 billion in cash, so they could pay it all off, but they haven't, so I wouldn't recommend this company until they'd paid it off, or at least dropped the debt/equity ratio to less than 1.0. After that, it may be worth looking at.
2006-11-21 11:18:28 · answer #2 · answered by STEPHEN J 4 · 0⤊ 0⤋
too close to 52-week high.
i would wait for a dip. i think Ameritrade (amtd) can get you 8% - 10 % return in a few months.
2006-11-21 10:45:24 · answer #3 · answered by hgary06 3 · 0⤊ 0⤋
try technical analysis
use aptistock freeware
2006-11-22 04:24:48 · answer #4 · answered by dinu_pawar 5 · 0⤊ 0⤋