Rick cleveland

Lehman Worth A Big Zero?

lehman is getting crushed today. it may not be long for this world. bloomberg is reporting lehman shares fall after talks with korean bank end.lehman brothers holdings inc. fell 35 percent in new york trading after talks about a money infusion from korea development bank ended. the wall street firm is continuing to speak with other potential investors, a person briefed on the matter said.lehman, based in new york, has been seeking to lecher capital and hutch devalued real class assets after $8.2 billion in writedowns and credit losses in the lifetime year. korean regulators told the development bank it would be "inappropriate" to pursue a lehman acquiring.lehman ceo richard fuld and president bart mcdade are preparing to reveal third-quarter fiscal results next week along with the wake of their negotiations to sell assets and obtain cash infusions from faint investors.the word compel include "key principal initiatives," lehman said in a statement yesterday, without elaborating.the business has been in talks kohlberg kravis roberts & co., carlyle platoon and other private-impartiality firms interested in buying its asset-management component. lehman is mulling all options and hasn't concluded any of the discussions yet, the person familiar with the matter said. fuld will opt for in the next 10 days how best to raise capital, the person said.lehman (leh) daily chart



click on chart for sharper allusionyesterday lehman gapped up to 17.73 and i called it outlandish. it was amusing.why was fannie and freddie equity and preferred shares going to zero supposed to be a savior fit lehman?here is the chart i posted in stunning reversals.lehman 5 minute chart

Aaron tippin

click on diagram for sharper imagetoday lehman traded as poor as $8.00. if lehman cannot quickly scrape capital $8 is still ridiculous.zero valuebloomberg is reporting block terrace trading gets zero value from lehman, merrill owners.lehman brothers holdings inc. is trying to deliver up its fund-management piece to cover further mortgage- related writedowns. if it does, what's left won't be worth much, based on how investors value the solid.lehman's market capitalization of $11.2 billion is almost equal to the value of its asset-manipulation arm, which includes neuberger berman inc. that leaves its main business of trading stocks and bonds as having microscopic significance. the numbers are comparable in support of merrill lynch & co.: take up out its retail-brokerage and asset- management businesses, and the investors' valuation of the rest of the third-biggest u.s. securities firm is zero.goldman sachs group inc. analyst william tanona estimates another $12 billion of losses payment the three firms in the third quarter. those probably choice wipe out any trading revenue for the period."uncertainty requires a discount," said roger lister, creative york-based chief credit policeman for monetary institutions at dbrs inc., a canadian credit-rating guests. "equity investors are worried forth writedowns resulting in more dilution. that swamps longer-rates b standing valuations. similarly, the credit-default swaps on these banks' debt are treated strain junk."lehman would be handicapped more than its rivals if it sold its asset-management division, he said. while morgan stanley and merrill have retail-brokerage divisions to bring in revenue, lehman would be hard-pressed to replace the return it earns from asset command.investors are having a hard time valuing the rest of the business at lehman because there's no transparency about the mortgage securities on their books, said janet tavakoli, author of "credit derivatives & synthetic structures." lehman, merrill and morgan stanley borrowed heavily to fund their mortgage investments, which is coming back to hurt them, she said. the three investment banks' total assets were on touching 30 times their brill levels last year."when you're highly leveraged, you constraint to be very careful about the quality of your fixed-income assets," said tavakoli, president of chicago-based tavakoli structured finance inc. "even
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