Doug et al:
I currently have no position is CS, have had in the past. Overall, a moneymaker. After today, I emotionally tempted to get in. Emotion scares me.
To me, it's undeniable that this stock is cheap. Is it dead money though? A trading vehicle I suspect.
Some thoughts on acquisition:
BAY was attractive to NT primarily for it's channel. I honestly don't think there was anything else there. CS has no channel to speak of.
When you look at the news for Bay investors, there was none. If/when CS is acquired, the news may be the same. The depressed price makes it look attractive, but will an acquisition produce the pop that makes holding the stock worth it?
Also, look at the deal Dave House got: President of NT. Bay shares make up ~20% of NT. imo, that's a huge deal. And it *still* doesn't help the shareholders profit. Although you can argue that it protects their investment.
So, what kind of deal can CB cut? Again, I'm a bit skittish. It seems to me that Reed (experienced w/ NYNEX merger) got shot, CB takes the helm, and NT goes for BAY. I infer an inability to cut a deal.
All of this soul searching, I still have a lump of cash and a voice (in my head) is screaming CS! Play the acquisition!
Thoughts appreciated.
Alex. |
