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AIG and Lehman Brothers are born again
http://www.thedeal.com/dealscape/2009/09/aig_and_lehman_brothers_are_bo.php
Lehman Brothers Holdings Cos (OTC:LEHMQ) and American International Group Inc.'s (NYSE:AIG) stocks are back from the dead. Well, they're no longer flatlining, at least.
This time last year, Lehman was tumbling toward bankruptcy and AIG was inching up to a bailout, but now Lehman Brothers' trading activity is at 50 times normal levels, ringing in at a whopping 32 cents, and AIG is up 400%, around $37 a share.
Why?
First, some traders believe the Lehman is going to return some money to shareholders, according to according to The New York Post.
Indeed, bolstering that view is a recent sale of $423 million worth of claims on Lehman's assets that were sold by hedge fund Citadel Investment Group to Credit Suisse last week. And, according to Lehman Holding's Web site, the company has accumulated $6 billion in cash from its derivative contracts. While some investors appear to have hope, many Wall Street observers think the notion that Lehman will have any dough left after paying off an estimated $100 billion in claims is little more than a pipe dream.
In AIG's case, the re-birth of the stock is due to CEO Robert Benmosche, according to The Wall Street Journal. Here's an outline of why, according to the article:
* The government rewarded Benmosche stock options as part of his compensation package, signaling that the institution is backed by the government, too big to fail and is not being liquidated.
* Benmosche stopped the fire sales to repay government loans.
* Benmosche took a vacation to his Croatian villa, signaling his independence from Washington.
* He also opened a dialogue with former CEO Maurice Greenberg Talking
* He slammed New York Attorney General Andrew Cuomo for his infamous performance during last spring's AIG bonus blowup.
Many analysts say there is really no reason to own either stock. Several analysts are calling AIG's stock underperforming and overpriced. Several other "zombie" stocks are also seeing rebounds in the past few weeks, such as Washington Mutual Inc. (OTC:WAMUQ), Fannie Mae (NYSE:FNM), Freddie Mac (NYSE:FRE) and Citigroup Inc. (NYSE:C). Are investors getting nostalgic? What do you think? - Maria Woehr
AIG and Lehman Brothers are born again
http://www.thedeal.com/dealscape/2009/09/aig_and_lehman_brothers_are_bo.php
Lehman Brothers Holdings Cos (OTC:LEHMQ) and American International Group Inc.'s (NYSE:AIG) stocks are back from the dead. Well, they're no longer flatlining, at least.
This time last year, Lehman was tumbling toward bankruptcy and AIG was inching up to a bailout, but now Lehman Brothers' trading activity is at 50 times normal levels, ringing in at a whopping 32 cents, and AIG is up 400%, around $37 a share.
Why?
First, some traders believe the Lehman is going to return some money to shareholders, according to according to The New York Post.
Indeed, bolstering that view is a recent sale of $423 million worth of claims on Lehman's assets that were sold by hedge fund Citadel Investment Group to Credit Suisse last week. And, according to Lehman Holding's Web site, the company has accumulated $6 billion in cash from its derivative contracts. While some investors appear to have hope, many Wall Street observers think the notion that Lehman will have any dough left after paying off an estimated $100 billion in claims is little more than a pipe dream.
In AIG's case, the re-birth of the stock is due to CEO Robert Benmosche, according to The Wall Street Journal. Here's an outline of why, according to the article:
* The government rewarded Benmosche stock options as part of his compensation package, signaling that the institution is backed by the government, too big to fail and is not being liquidated.
* Benmosche stopped the fire sales to repay government loans.
* Benmosche took a vacation to his Croatian villa, signaling his independence from Washington.
* He also opened a dialogue with former CEO Maurice Greenberg Talking
* He slammed New York Attorney General Andrew Cuomo for his infamous performance during last spring's AIG bonus blowup.
Many analysts say there is really no reason to own either stock. Several analysts are calling AIG's stock underperforming and overpriced. Several other "zombie" stocks are also seeing rebounds in the past few weeks, such as Washington Mutual Inc. (OTC:WAMUQ), Fannie Mae (NYSE:FNM), Freddie Mac (NYSE:FRE) and Citigroup Inc. (NYSE:C). Are investors getting nostalgic? What do you think? - Maria Woehr
Please refer to msg# 2008
GREEN... PUSH PUSH PUSH
Lehman, WaMu Join Zombie Dance
http://www.thestreet.com/story/10593702/1/lehman-wamu-join-zombie-dance.html?cm_ven=GOOGLEFI
09/02/09 - 11:42 AM EDT Be the First to Comment
That's right, shares of Lehman Brothers Holdings and Washington Mutual have joined other financial zombies like Citigroup (C Quote), Fannie Mae (FNM Quote), Freddie Mac (FRE Quote) and AIG (AIG Quote) in seeing a huge surge in price and volume in the recent rally, before the tide began to stem on Tuesday.
Dear reader, tread carefully with these stocks. Celebrity trader Jon Najarian, co-founder of Optionmonster.com, told the New York Post the buying is "more than just the dash for trash," but the reasons are highly speculative.
In an interview with TheStreet.com, Najarian argued that if the bankruptcy judge decided to keep Lehman running to allow it to have a better chance of making paying off creditors, he might pay just 80 cents on the dollar to creditors. From the $6 billion Lehman has collected so far, that would leave it with a market cap of $1.2 billion, or about $2 per share, Najarian reasons.
But who is to say the judge would do such a thing? Just because Najarian is trading in this stuff doesn't mean most individual investors should be. He has access to sophisticated trading technology and a wide range of sources of information not accessible to most of us. He will jump in and out of a stock for reasons retail investors may not hear about for weeks.
"This is a 15-cent stock, so this is not for me to dangle something out there for people to go rush in and buy it," Najarian says.
Lehman, WaMu Join Zombie Dance
http://www.thestreet.com/story/10593702/1/lehman-wamu-join-zombie-dance.html?cm_ven=GOOGLEFI
09/02/09 - 11:42 AM EDT Be the First to Comment
That's right, shares of Lehman Brothers Holdings and Washington Mutual have joined other financial zombies like Citigroup (C Quote), Fannie Mae (FNM Quote), Freddie Mac (FRE Quote) and AIG (AIG Quote) in seeing a huge surge in price and volume in the recent rally, before the tide began to stem on Tuesday.
Dear reader, tread carefully with these stocks. Celebrity trader Jon Najarian, co-founder of Optionmonster.com, told the New York Post the buying is "more than just the dash for trash," but the reasons are highly speculative.
In an interview with TheStreet.com, Najarian argued that if the bankruptcy judge decided to keep Lehman running to allow it to have a better chance of making paying off creditors, he might pay just 80 cents on the dollar to creditors. From the $6 billion Lehman has collected so far, that would leave it with a market cap of $1.2 billion, or about $2 per share, Najarian reasons.
But who is to say the judge would do such a thing? Just because Najarian is trading in this stuff doesn't mean most individual investors should be. He has access to sophisticated trading technology and a wide range of sources of information not accessible to most of us. He will jump in and out of a stock for reasons retail investors may not hear about for weeks.
"This is a 15-cent stock, so this is not for me to dangle something out there for people to go rush in and buy it," Najarian says.
Lehman, WaMu Join Zombie Dance
http://www.thestreet.com/story/10593702/1/lehman-wamu-join-zombie-dance.html?cm_ven=GOOGLEFI
09/02/09 - 11:42 AM EDT Be the First to Comment
That's right, shares of Lehman Brothers Holdings and Washington Mutual have joined other financial zombies like Citigroup (C Quote), Fannie Mae (FNM Quote), Freddie Mac (FRE Quote) and AIG (AIG Quote) in seeing a huge surge in price and volume in the recent rally, before the tide began to stem on Tuesday.
Dear reader, tread carefully with these stocks. Celebrity trader Jon Najarian, co-founder of Optionmonster.com, told the New York Post the buying is "more than just the dash for trash," but the reasons are highly speculative.
In an interview with TheStreet.com, Najarian argued that if the bankruptcy judge decided to keep Lehman running to allow it to have a better chance of making paying off creditors, he might pay just 80 cents on the dollar to creditors. From the $6 billion Lehman has collected so far, that would leave it with a market cap of $1.2 billion, or about $2 per share, Najarian reasons.
But who is to say the judge would do such a thing? Just because Najarian is trading in this stuff doesn't mean most individual investors should be. He has access to sophisticated trading technology and a wide range of sources of information not accessible to most of us. He will jump in and out of a stock for reasons retail investors may not hear about for weeks.
"This is a 15-cent stock, so this is not for me to dangle something out there for people to go rush in and buy it," Najarian says.
I agree 100%. I hope you don't mind that I took your summary and posted it on the yahoo lehmq board.
Great job by the way...
It would be nice to see us close @ .09.
Market makers do :P
True, but not true. Ps are not the first in line. All preferreds are treated equally. If Ps get 25% of the face value so do the other preferreds.
Note: Ps do not have seniority over the other preferreds. Trust Preferreds have seniority over all of the preferreds.
Back filled...we should move up now.
Filling gap and great buying opportunity :P
BS... If you owned a corporation with separate entities under that corporation how would you benefit or what interest would you have in suing your parent company. This is a BS claim and article.
I don't really care if entity A is suing entity B for 1 trillion dollars as the entities are all under the same corporation (Lehman Brothers). It's all relative... means absolutely nothing.
Thoughts?
BS... If you owned a corporation with separate entities under that corporation how would you benefit or what interest would you have in suing your parent company. This is a BS claim and article.
I don't really care if entity A is suing entity B for 1 trillion dollars as the entities are all under the same corporation (Lehman Brothers). It's all relative... means absolutely nothing.
Thoughts?
Lehman Claims It's Handling Could Reach £61 Billion
Sorry, but we have to take the good with the bad find out where we really are in terms of value.
http://www.nytimes.com/reuters/2009/08/30/business/business-uk-lehman-pwc.html?_r=1
LONDON (Reuters) - Administrators of the London arm of Lehman Brothers said the claims it is handling against the collapsed Wall Street bank could total as much as $100 billion (61 billion pounds).
PriceWaterhouseCoopers, which is working with over 100 companies, mostly in the UK but also in continental Europe, said on Sunday: "We're dealing with a large number of entities and therefore the claims could be as much as $100 billion.
"These claims are exceptionally complex and we anticipate a large amount of further work in dealing with (them)."
A significant amount of the claims arose as a result of guarantees issued by the parent company to its subsidiaries, the administrator said.
PwC said it had worked with administrators in other affiliates to understand Lehman's accounting system so a standard approach to the reconciliation of inter company balances could be agreed.
"If this can be achieved then it should reduce the likelihood of affiliates suing each other in pursuit of amounts that are owed between the different Lehman estates," it added.
Lehman Brothers Holdings filed for Chapter 11 bankruptcy protection in September 2008, the high water mark of the credit crisis.
Employees, counterparties and creditors have until September 22 to submit claims with the U.S. bankruptcy court.
(Reporting by Rosalba O'Brien; Editing by Mike Nesbit)
Nice summary, Brikk. Keep up the good work.
Best of luck to you this week :)
I think we will blow right through that resistance point, but thanks for the info.... IMHO
BTW-- That is based on momentum/buzz right now.
There is no way this stock will remain lower than the commons. It will smoke the commons period. They are grossly undervalued at this point.
per annum are paid quarterly on 2/15, 5/15, 8/15 & 11/15
SECURITY DESCRIPTION: Lehman Brothers Holdings Inc., 7.95% Depositary Shares each representing 1/100th of a share of the 7.95% Non-Cumulative Perpetual Preferred Stock, Series J, liquidation preference $25 per depositary share, redeemable at the issuer's option on or after 2/15/2013 at $25 per depositary share plus declared and unpaid dividends, and with no stated maturity. Non-cumulative distributions of 7.95% ($1.9875) per annum are paid quarterly on 2/15, 5/15, 8/15 & 11/15 to holders of record on the record date which is the first day of the month in which the payment is due (NOTE: the ex-dividend date is at least 2 business days prior to the record date). The dividends are non-cumulative and if the board of directors does not declare a dividend or the company fails to pay a dividend declared by the board for any quarterly dividend period, the holder will not be entitled to receive any dividend for that quarterly period and the undeclared or unpaid dividend will not accumulate. Dividends paid by the preferred are eligible for the 15% tax rate on dividends under normal holding restrictions and are also eligible for the dividends received deduction for corporate holders (see page S-29 of the prospectus for further information). In regard to the payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
Here is my outlook of next week's trading. This stock will go nuts with ups and downs... daytraders/flippers will be here next week. I have no plans of flipping my shares as I feel they have great long term value. Sure I might sell a small amount to cover my initial investment, but the rest I will be holding to the end. The end could be face value or a good percentage of the face value and/or the dividends reinstated; now that would be great. 1.99 per share is a huge dividend if you are holding a large amount of shares.
Best of luck to all.
Like the look of the ask here on investorhub .09 :P Hope we see that on Monday.
Gapper on Monday.
Weird, Lehman and Wamu commons are neck to neck now
Wamu and Lehman are neck to neck now.
Gotta love it... Push Push Push!!!! :P
I'm going to need a nap after this... I'm exhausted...
Go Wamu and Lehman!!!
Nice million block.
THANK YOU!!! Come on baby.
Sweet :P The roof is on fire. Not even power hour yet...
Go Lehjq!!!
Push Push Push... Where are they after .045?
Parlay Baby!!! Lehman and Wamu! Wahooo!!!
Not even the power hour yet :P
Can someone gives us a weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
Holy Crap... that's what I'm talking about
Nice size blocks going through. Push Push Push!!!
Wow! Commons are flying...
We are now in bed with our leading creditor...Love it!!!
Citadel Solutions will be responsible for processing and administrating between $40-50bn of complex assets at Lehman Brothers Holdings that must still be valued, managed and in some cases hedged on a daily basis while the bank’s portfolio is slowly decomissioned.
If you can't beat them, join them :P
http://www.ft.com/cms/s/0/0466a25e-9259-11de-b63b-00144feabdc0.html
Lehman derivative disputes must be mediated-NY court
Wed Aug 26, 2009 1:46pm EDT
NEW YORK, Aug 26 (Reuters) - A New York bankruptcy court on Wednesday ordered that banks and other firms involved in disputes over the value of derivatives held with Lehman Brothers enter into compulsory mediation in an effort to reduce the number of disagreements brought before the court.
Lehman's (LEHMQ.PK) creditors committee is seeking payments on derivatives it believes it is owed money on, and has sought to begin mediation as an initial means of resolving any differences between the investment bank and its counterparties over the value of the contracts.
Derivatives take their value from underlying assets, which can include debt, equity or commodities. The contracts can be used to hedge or bet on changes in the underlying assets.
Lehman said it has around 900,000 derivative transactions with hundreds of firms, and that many of the contracts that have the potential for recovery in favor of Lehman are in dispute, or are expected to be.
Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York agreed that mediation should be implemented in order to reduce the number of cases before the court.
Peck also ruled, however, that more time should be spent refining the dispute resolution procedures after around 50 of Lehman's trade counterparties lodged various objections to the resolution proposals.
Lawyers representing Lehman's creditors argued that similar procedures were successful in closing out derivatives held with failed energy trading firm Enron Corp when the company went bankrupt in 2001, and yielded $600 million for creditors. (Reporting by Karen Brettell; Editing by Gary Crosse))
It appears that we worked out a deal here...as we owned them a 500 million. I was hoping something good would come out of that and not a 500 million judgment against us.
We have the best legal team working for us.
Go Lehman!
Lehman Brothers Holdings Inc. Selects Citadel Solutions as Asset Servicing Platform Provider
PR Newswire
posted: 16 MINUTES AGO
CHICAGO, Aug. 26 /PRNewswire/ -- Citadel Solutions announced today that it has been selected by Lehman Brothers Holdings Inc. (LBHI) to provide administration services, including the creation of an asset servicing platform. Citadel Solutions will leverage its proprietary technology and team of experts to support LBHI in managing middle and back-office processing for its derivative, corporate bank loan, commodity and principal investment portfolios.
"Following an extensive search, we are confident that Citadel Solutions has the technological capabilities and expertise we need to execute our transition strategy," said Jeff Donaldson, head of LBHI's technology transition effort and managing director for Alvarez & Marsal, a leading professional services firm overseeing LBHI's restructuring. "Citadel Solutions's single platform is a flexible and cost-effective means to service LBHI's complex and diverse asset portfolios. It clearly meets our objective of maximizing value to creditors in the most suitable way."
The implementation of the Citadel Solutions platform is anticipated to begin in September 2009, and to be fully operational in 2010. In addition to providing ongoing services for Lehman's asset classes, Citadel Solutions will supply technology and middle-office support during the wind-down of the Lehman Estate over an anticipated three to four year period. The retention of Citadel Solutions on an interim basis was approved today by the bankruptcy court and is subject to the negotiation and execution of definitive documentation.
"Our subject-matter expertise in all aspects of capital markets will enable us to build an infrastructure to efficiently wind-down the assets held by the Lehman Estate," said John Buckley, President of Citadel Solutions. "By leveraging our technology, domain capabilities and team culture, we will provide agile and innovative solutions to our partners at LBHI."
About Citadel Solutions
Launched in 2007, Citadel Solutions (www.citadelsolutions.com) provides technology-driven fund administration and reporting services to hedge funds and financial institutions that operate across a broad range of investment strategies. With more than $25 billion in assets under administration, Citadel Solutions leverages Citadel's best-in-class infrastructure and leading-edge technology to provide Operational Alpha(R) to its clients.
We have a hearing tomorrow. Best of luck to all.
Lehman Brothers Holdings Inc.. with hearing to be held on 8/26/2009 at 10:00 AM at Courtroom 601
http://chap11.epiqsystems.com/docket/docketlist.aspx?pk=de7ced2b-52e7-4172-92e1-9ec425933bd0