Lehman is getting cheap - should I wait?
Answers
989 points
rvilmur answered one year ago …
LEH is one of those falling knife stocks. Can you catch one? Things are so bad at LEH that they have just put themselves up for sale. It is another Bear Stearns where the shareholders will get the shaft from management and the Federal Reserve who will have to guarantee the bad debt of LEH to the buyer of the company.
Even if there is some stock price recovery after a takeover, this is a pure gamble and not investing.
435 points
larryat36 answered one year ago …
The only thing to wait for here is oblivian.
Read more from larryat36
293 points
Intern answered one year ago …
Former trader/manager at some of the big banks on Wall Street weighs in on this:
http://www.informationarbitrage.com/2008/09/leh-dead-firm-w.html
His advice isn't just to wait, it's to avoid the situation entirely.
