I’ve been watching Bear Stearns (BSC) ever since it subprime debacle last year, and after I gave my opinion in a discussion concerning it’s stock price. Since that time, BSC has continued on a downward trend.
However, I’ve noticed that this trend hasn’t always been without a lot of volatility. Regardless of the intrinsic value of BSC, the stock price has often correlated with the volatility of stock market. Although I haven’t calculated the exact figure, one can easily figure out that BSC has a beta coefficient measurement of around “2″, twice the volatility of the stock market.
I mention this because, if one has the juevos to trade BSC, it can be a day-trader’s (and swing-trader’s) delight.
Just check out it’s price movements in today’s market volatility. Bear Stearn’s stock price has fluctuated over $11.00 per share. It reached a 52-week low of just over $68.00/share this morning, and rose to over $79.00/share in afternoon trading.
Comments 2
Anyone get on board after I mentioned BSC?
It would have been around a $20.00/share gain in just a few days time.
Posted 29 Jan 2008 at 9:11 am ¶As fast as they go up, they’re even faster going down.
Now you know why I said that you need “juevos” to trade BSC.
Bear Stearns Shares Plummet As Moody’s Cuts Alt-A Ratings
Take a look at today’s chart:
Posted 10 Mar 2008 at 2:27 pm ¶Post a Comment