How low will LEH go
Are there problems only with hedge fund losses or also with subprime???
Answers
788 points
DaveDiggz answered one year ago …
The hedge fund losses relate to sub-prime. The credit markets are at the root of many, if not all, of the problems the financials have been having.
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825 points
Dragonsbane answered one year ago …
Massive writedowns, more equity/rights issues to raise capital and if a major counterparty goes belly up they'll be done like burnt toast. Nothing good about this company at all. If you like the sector, buy Goldman Sachs. Nothing but downside at Lehmans.
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148 points
cherry answered one year ago …
There is so much money betting on the demise of Lehmans (check the short positions) even a good company in good shape would have a hard time bucking this negative trend but if you want to invest follow the Vultures
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jester112358 answered one year ago …
I'm speculating that it could go as low at $25/share or even the way of Bear Sterns in a true liquidity panic.
Disclosure: I hold PUTS (short) LEH and intend to hold until the next liquidity crisis sometime between now and Sept.
119 points
wiseone answered one year ago …
I do not pretend to know. But I think there is room to fall to 16.74. or thereabouts - a low it hit in the bearish year of 2000. There really has been a loss of confidence in financials that has continued for some time. The media pack moans about this daily because many of their friends on Wall St. are losing their jobs and many more are losing money on their investments ins such giants as GS, MS, et al. Someday this will end - but not too soon, I think. The blithe disregard that the Americans have had for the massive debt of this country and its general slide is pathetic. Like the former hero of Mad Magazine, Alfred Q. Newman, the motto of our illustrious President, and the country, is " What, me worry? "
wiseearl
307 points
CG answered one year ago …
It could go as low as $16 and still be within its long-term uptrend.
I've been very short LEH and just recently covered on my blog, while I still have a few long-term puts personally. I covered my overweight puts over the course of the past few days, including today, for profits between 45 - 200%. If others have these kinds of gains on the table, it's prime for a rally given it is such a crowded short and the numbers are already known.
I think a positive day or two is in its near future so I'm prepared to go long for a flip if I see strength in it. I thought that might happen today, but obviously not.
