Biotech Valuation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Valuation

CRSP 57.58

+0.9%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Biomaven who wrote (28112)	9/24/2008 4:24:15 PM
From: kenhott	1 Recommendation Read Replies (1) of 52153

Nobody wants to hear me bubble any more. But look at what Merrill did in July 08. They sell original $30.6B U.S. Super Senior ABS (Asset Backed) CDO to Lone Star for $6.7B. They had it at $11B on the books. $6.7B is 22c on the dollar. For that, Merrill got $1.7B in real cash. Puts up money to finance the rest. Merrill then is on the hook for the other $5B if things goes down more. So $1.7B for $30.6B of junk equals 5%! These are SUPER SENIOR stuff. There's been billions raised by Goldman, Blackies, etc to buy junk. They are all sitting. I can tell you they don't want 65c on the dollar. The easy/soft stuff are not so much the problem. It is the difficult/hard stuff that are the problem. Can you clear the system without clearing the difficult stuff? So if I am Bank A, I may have an idea how much dodo I am in, item by item. Why should I sell the govt anything that I think I have already marked at the "right" price unless I know I can take a nice gain? Conversely, with the difficult stuff, when knowledge is virtually ALL one sided (and you tell me these guys are not going to talk to themselves (They may also be hearing voices by now)?), so what is the likely ending? We don't know what is motivating Bill within his head. Can he be right? I really really hope so. Please. I am at the edge of what I can understand and perceive. So don't think about my comments too closely.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next