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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: El Canadiense who wrote (42342)	4/21/2011 12:29:54 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78764

re TEPCO >>TEPCO: Looks like it will be bailed out, deemed "too big to fail". If this is so this could be a terrific buy at present level, no?<< I think it is clear that the Japanese government does not want TEPCO to fail. For one thing my understanding is that Tepco legally does not have to pay for damages from the nuclear disaster and it would be inconvenient for the Japanese government to get into a lawsuit about that. it seems better from there perspective to do a "Tarp" like deal and inject equity to keep TEPCO alive while calling the shots. Whether that is good for shareholders remains to be seen; FNM and FRE did not go bankrupt either (again to inconvenient for the US government) but that does not mean that it's good for shareholders. I don't feel like I have an edge calling the different outcomes so I don't participate in this gamble.