Lehman Brothers (LEH)

[winston]

This is a moving target so I dont think anybody can really value their assets properly.

Did you notice that the FA King ( WB ) has not bought any financial stocks this round ? Why ? Is it because he was able to put a value on things and thought that they dont offer him a Margin of Safety or that he was not able to value things properly ?

[kennynah]

i ring him later...let you know...thanks for bringing this fact out though...

[iam802]

maybe WB..now taking a back seat...

let his potential successor(s) prove to him ....what kind of value (or under-value companies) they can find in this market.

[KimHuat]

From cnbc(for details see cnbc website)
Lehman In Talks To Sell Key Unit; Stock Rebounds
Topics:Earnings | Wall Street | Mortgages | Credit | Banking
Sectors:Financial Services | Banks
Companies:Lehman Brothers Holdings IncBy CNBC.com | 10 Sep 2008 | 08:31 AM ET Font size: Beleaguered investment bank Lehman Brothers , which posted a third-quarter loss of $3.9 billion, or $5.92 per share, said it is in "advanced discussions with a number of potential partners" to sell a majority stake in its key investment management division.

The company also said it is "committed to examining all strategic alternatives," leaving the door open to a complete takeover of the company.

[caseyc]

Did you notice that the FA King ( WB ) has not bought any financial stocks this round ?

Someone correct me if i'm wrong.... but i recall reading that WB increased his stake in WFC during this period, at an avg price of US$30. Think i read this on seekingalpha. K, wait for u to call him to confirm

[kennynah]

c:
i just asked for his confirmation....you are right...he has stakes in Wells Fargo...bcos, Wells Fargo ceo did not participate in purchasing any of those toxic subprime related assets....

as for LEH's value, i tot he said (bad skype line connection)... better for huatopedian FAs to perform the valuation after this news release of losses, dividend cuts and restructuring of their loan assets.

so...LPPL...m still waiting for our folks here for a "fair" LEH stock price... but i suspect.... tan ku ku for an answer...

[blid2def]

Saw this in the RSSfeed from Morningstar.

Funds with the Most Exposure to Fannie and Freddie
http://news.morningstar.com/articlenet/ ... ?id=252365

[kennynah]

MS has exposure to fnm and fre...but a mere usd57mil

[ishak]

Analysts see Bear Stearns-like fate for Lehman at worst
Reuters, 10 Sep 2008

The most attractive option for Lehman Brothers Holdings Inc is to reduce troubled assets and raise capital, according to at least two analysts, who see a Bear Stearns-like bailout for Lehman in a worst case scenario.

Not ruling out a buyout by the management, Fox-Pitt Kelton's David Trone said, in a note dated Sept 9, that Lehman could sell its investment-management unit and fund the entire tender.

The management would surely be willing to pay more than a strategic buyer as they know Lehman's "problem" assets better than anyone, said Trone, who believes that Lehman needs $5 billion in net capital.

In any event, Trone believes deal scenarios would have current shareholders getting $10 a share to $15 a share.

Banc of America's Michael Hecht also said the "best case" scenario for common equity holders is that Lehman "limps along" and gets by with a partial reduction of its troubled asset exposure by raising dilutive capital and selling a portion of its investment-management unit.

Widening his third-quarter loss-per-share view by 39 percent to $4.80, Hecht said in a research note on Tuesday that a Bear Stearns-like bailout will likely leave little value for common stockholders of about $2 per share.

Lehman has been in talks with investors on possible capital infusions and some analysts expect it to spin off or otherwise dispose of much of its commercial real estate portfolio.

The investment bank has also been looking out for investors to buy a piece of its investment-management unit, which includes the profitable asset-manager Neuberger Berman.

Shares of Lehman fell as much as 46 percent on Tuesday, wiping out $4.4 billion in market value on concerns that the Wall Street investment bank will not be able to raise capital it desperately needs to survive the global credit crisis.

[winston]

Deja Vu... Maybe another Bear Stearns deal is already in the making.

Once it get done, another overhang would be removed. And the shorts will be squeezed again ( for one day ) ...

Who's next after that ? AIG ?