So will you believe this broker house?
2008/1/2, Henry Liem <[EMAIL PROTECTED]>: > > ML lg BU nich... :P > > Salam NewBie, > Liem > > > Merrill Lynch Aiming to Raise More Capital? > <http://www.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?SiteName=Investor&ArticleId=NS20071231090719HeadlineHits> > > Merrill Lynch Aiming to Raise More Capital? > Last Update: 31-Dec-07 09:06 ET > > > Apparently, $6.2 billion doesn't go as far as it used to. Just a week > removed from receiving a $6.2 billion capital infusion from Temasek Holdings > and Davis Selected Advisers, Merrill Lynch (MER 52.97) is reportedly > talking to Chinese and Middle Eastern sovereign wealth funds to raise > capital, according to England's Observer. > > > The paper didn't identify its sources for the article, yet it was also > noted that John Thain, Merrill's new CEO, canceled New Year leave for his > top staff. > > Merrill Lynch hasn't commented on the allegation. A report such as this, > though, will typically draw a quick refute from the affected company if it > is blatantly false. Absent a denial from Merrill Lynch, then, one has > reason to believe there is validity to the report. > > Time will certainly tell, but for now, the market is cognizant that > Merrill Lynch's mortgage-related problems run deep. Just how deep is the > great unknown. Goldman Sachs last week boosted its fourth quarter > write-down estimate for Merrill Lynch from $6.0 billion to $11.5 billion. > In turn, the firm also cut its loss estimate from $1.50 per share to $7.00 > per share. > > The idea that Merrill Lynch is still working to raise capital after a $6.2 > billion injection, the bulk of which was reported to have been made at a 9% > discount to the current stock price, is going to feed expectations that its > fourth quarter report in mid-January is going to be quite ugly. > > This expectation is apt to keep the stock under wraps into the report. > Arguably, though, the uglier the report is, the better, as it will drive a > belief that Merrill Lynch is close to the bottom of the mortgage-related > mess. Its ability to sell respected investors on making a capital injection > during these dark times speaks to that point. > >
