ns4
Sep 24, 10:05 PM
$ABR book value is super reliable 👍 until it's not.
Lehman and Bear told very different stories about their book values than the market ended up believing:
-Lehman Brothers (filed Sept 15, 2008): its last reported book value per common share was
$34.21
- Bear Stearns: Bear executives were still telling analysts the firm's book value was "at a minimum of
$80 a share. JPMorgan agreed to pay
$2 a share.
So Lehman filed claiming ~
$34/share of book equity, and Bear's management insisted on
$80/share right up to the weekend they sold it for
$2 — both cases where stated book value turned out to be the fiction rather than the market.
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