Monday, March 24, 2008

Do You Believe The CEO?

"The past week has been an incredibly difficult time for Bear Stearns. This transaction represents the best outcome for all of our constituencies."
ALAN SCHWARTZ, president and CEO of Bear Stearns, which, as part of a federal bailout, was acquired by rival JPMorgan Chase for $236.2 million--a meager $2 per share

I guess $2 is better than no dollars but to claim that this is the best outcome is a little far fetched. Company management is a key evaluation criterion when you consider buying shares of any company. Primarily because you want to invest in a business that is run by a competent, honest and transparent management team.

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