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Hmmmmmm...haven't thought about that but, it could happen. A short squeeze would certainly be nice. But, if your holding shares long that were bought at 15,20,30 bucks etc. don't expect it to have that much of a positive effect on your position. But, if you got in around .20 or so it could definitely make you bank. But, surely though, anyone short would have covered this by now. If they haven't they probably don't need to be shorting.
-Dave-
If it get's delisted and it almost certainly will be..LEH will move their stock to another exchange like the AMEX, NASDAQ, or even OTC if LEH want's it to continue trading.
-Dave-
"I don't want Morgan Stanley, I want to acquire Lehman Brothers" Barclays CEO on CNBC interview. There is the distinct possibility that the scenario outlined in the post below will transpire. JMO.
-Dave-
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=32218255
Most important part of the announcement to me-------Barclays Enters into Support Agreement with Lehman Brothers to provide:
- $500 Million DIP-Financing to Lehman Brothers Holdings Inc.
- A Substantial Interim Credit Facility to Lehman Brothers Inc.
Barclays is basically investing in their 'new partner'. Total buyout of LEH in the coming months once the balance sheet cleans up a little bit IMO. In all reality all that needs to happen to clean the majority of it up is for the real estate market to turn back up. One that happens LEH's huge real estate holdings become true assets rather than a thorn in the side. That in itself would be enough to offset alot of their debt. I just don't know how it would eventually effect the shareprice. In any case, the new worldwide financial service heavyweights for the coming decades are beginning to emerge. Two british banks are considering merging..that just might make Barclays a little more aggressive...the new financial/investment system will be based on mega-banks. Barclays wants to be one of them and LEH assets can really put some meat on their bones...JMO.
-Dave-
Whatup DD...I'm with ya. The halt isn't a bad thing..they can't do much more to it. More upside than downside here.
-Dave-
Because it will provide funding that LEH needs to facilitate a spin off their 'bad' stuff into a separate company, compartmentalize it and get the bad debt off their books which will allow them to emerge from chapter 11. IMO I don't think Barclays is done with just this one deal with LEH and there are other firms/companies wanting to pick a few bones themselves. The more cash LEH can raise the better.
-Dave-
I agree...there would be no need to halt for news dissemination if it was negative...I mean what else can be done to it on the negative side..this will be very interesting indeed.
-Dave-
Uhhhhhhh...no it isn't. In any case, there are those that are much more versed and knowledgeable in these matters than you or I and appear to be willing to pay as of now about 8 billion dollars total for some of those 'assets'....would you say that the 'suckers' buying this are more of a sucker than a sucker betting on a possible 'shell' play?? Interesting question isn't it?
-Dave-
That's not necessarily true. That depends on the type of bankruptcy. As it stands now, LEH is still an operating company and the company can still be bought at a premium to the current PPS. The only question is what that premium will be.
-Dave-
Lehman Asset Management Sale "A Matter Of Days" - SourcesLast update: 9/16/2008 10:56:38 AM
By Victoria Howley and Marietta Cauchi
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Lehman Brothers Holdings Inc. (LEH) has narrowed the bidders and accelerated the timetable for the disposal of its asset management business, two people familiar with the matter said Tuesday. The bank excluded the asset management business from its bankruptcy filing Monday and wants to sell the division quickly to maximize value and to maintain key clients and fund managers, one of the people said. The auction was originally for a 55% stake in the bank's investment management division, which includes the Neuberger Berman branded business. But Lehman has since put on the block the entire business, which has been valued at $5 billion to $6 billion. The sale is expected to happen in "a matter of days not weeks", the people said, and could take place as early as the coming weekend. Up to four private equity firms are still in contention to buy the business - Bain Capital, Hellman & Friedman, Clayton Dubilier & Rice and Kohlberg Kravis Roberts & Co. Bain Capital and Hellman & Friedman are viewed as the frontrunners in the auction and could potentially team up to acquire the assets, one of the people familiar with the matter said. Lehman's wealth management company remains a strong business within the asset management industry - a financial services sector insulated somewhat from Wall Street's present chaos, according to analysts. Strong free cash-flow - or earnings adjusted for non-cash expenses and capital expenditures - as well as strong margins and recurring revenue stream from management fees paid as a percentage of assets, all partly insulate asset management companies from the credit crisis. Company Web site: www.lehman.com -By Victoria Howley, Dow Jones Newswires; 44 20 7842 9261; victoria.howley@dowjones.com (Suzanne Barlyn contributed to this item.) Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=Ft66e%2BXvbMLa7fjXiGgXbQ%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresSeptember 16, 2008 10:56 ET (14:56 GMT)
WSJ UPDATE:Barclays Near Deal To Buy Some Lehman Ops -SourceLast update: 9/16/2008 10:48:42 AM
By Dana Cimilluca, Carick Mollenkamp
and Matthew Karnitschnig
Of THE WALL STREET JOURNAL
LONDON (Dow Jones)--Barclays PLC (BCS) was close to a deal to acquire a large chunk of Lehman Brothers Holdings Inc.'s (LEH) U.S. operations for just under $2 billion, according to people familiar with the situation. The deal, for now, would allow Barclays, the U.K.'s third-largest bank in terms of market value, to buy Lehman's U.S. broker-dealer unit a day after parent Lehman Brothers Holdings filed for Chapter 11 bankruptcy protection. Barclays had been in talks over the weekend to buy the entire firm before walking away because Barclays couldn't obtain U.S. government support for Lehman's $85 billion in souring assets or backing for Lehman's balance sheet. Under the parameters currently being discussed, however, Barclays potentially could leave behind Lehman's troubled assets at the parent level, which is now going through a bankruptcy proceeding. The deal could still change or fall apart, according to these people. (This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.) For now Barclays is targeting only the U.S. broker arm, although bankers in Lehman's European arm, which is headquartered in London, are holding out hope the acquisition would include the London operations, including investment banking and stock sales and trading. But for now, Barclays' main goal is to complete a deal for the U.S. arm. Barclays needs to complete the transaction quickly. Lehman's employees and clients are likely to move on as they look for new jobs. For Barclays and its president, Robert E. Diamond Jr., the deal would fill a gap in Barclays Capital's operations, which lack scale on Wall Street. The firm has been hiring to shore up businesses such as real estate. But an acquisition of Lehman's U.S. unit could prove to be a tough sell to investors. Barclays' shares fell about 16% to GBP2.90 ($5.23) in London afternoon trading Tuesday. The transaction would also stress Barclays at a time when the U.K. economy is under pressure. "Is it a good idea? Depends on what piece and what price," said Alex Potter, an analyst at Collins Stewart. Barclays needs to reduce its leverage, "so it needs to avoid Lehman's balance sheet. But there is also a lot of talented people at Lehman," which could be a good addition, he said. Potter said that any Lehman purchase would be a move away from the strategy that Barclays outlined a year ago of focusing on its retail business and emerging markets like Russia. With the addition of business such as underwriting equity deals and merger-and-acquisition advisory, Barclays would take its investment bank away from the strategy it has been pursuing since Mr. Diamond took over as its investment banking chief. To counter criticism, Barclays is likely to pitch the idea that it is taking a big leap, nearly overnight, in amassing scale in investment banking. For the first half of this year, in results reported in early August, Barclays reported net income of GBP1.71 billion ($3 billion), down 35% from a year earlier. The bank also recorded GBP2.8 billion in new write-downs. -By Dana Cimilluca, Carick Mollenkamp and Matthew Karnitschnig, The Wall Street Journal; 212-416-3464 Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=Ft66e%2BXvbMLa7fjXiGgXbQ%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresSeptember 16, 2008 10:48 ET (14:48 GMT)
Yes, it could be a no brainer if Lehman would stop thinking so highly of themselves...they're not really in a bargaining position right now.
-Dave-
WSJ: Barclays Close To Deal To Buy Lehman US Assets For About $2B - Source >LEHLast update: 9/16/2008 8:58:09 AM(MORE TO FOLLOW) Dow Jones Newswires (201-938-5400)September 16, 2008 08:58 ET (12:58 GMT)
That was funny!! But hey, it's ok to dream and every now and then they come true. Just keep in mind though that when KDB wanted to buy LEH last week, LEH wanted a premium that was trading three times what the stock was trading at during their negotiations of week before last...KDB was willing to pay just above what the stock was trading at during the negotiations ..so, with that being said, do you think that 4 to 5 bucks a share is now a possibility? Nothing has changed at LEH between last week and this week except Chapter 11....KDB or Barclays can now easily get what they wanted to begin with at less than a quarter of what they probably originally offered. That quarter would equate easily into several dollars a share. It's a good deal and they know it. The talks this weekend didn't fall through because LEH had too much debt on the books..they've all got the same debt on their own books. It fell through because LEH wanted too much and the Fed wouldn't backstop it. If the Fed would have backstopped the deal the buyers would have paid up...The Fed didn't so, they didn't pay up and negotiations stopped. The playing field has changed now.
-Dave-
It all depends on what they get worked out today or tomorrow...this is definitely a roll of the dice but, it now looks like Barclays is doing exactly what they wanted to do in the beginning...gotta hand it to them, they knew what was on the books and knew what would happen. Smart..very smart.
-Dave-
Charlie Gasparino now saying on CNBC that his sources are telling him that Barclays is now trying to buy the entire firm rather than just certain divisions.
-Dave-
So Barclays AND KDB back at the table?? Hmmmmm.....now you're looking at a potential bidding war. I certainly hope anyone that was short took the heaven sent opportunity to cover yesterday.
-Dave-
Harder than that is to watch the Fed throw money around like candy all day today...but, couldn't do it yesterday. I don't like the government meddling but, I'm having a hard time understanding this.
-Dave-
Then you've made a good play. Congrats.
-Dave-
Nope all done!! Well, sorta...I'm still in the reserves so I gotta work a couple of shifts a month but, that's it. Full time trading now...as far as shorting..I'm neutral on them. Shorts serve a purpose but, they can pile onto a stock without mercy when they smell blood like they did with LEH...next ones to watch will be Wachovia and yes..Bank of America..BAC will not show a profit for quite sometime and although huge, will be weak for sometime to come. JMO.
-Dave-
Because in August today was not even on the radar screen..the company was booking losses but, still liquid and had access to the discount window to make ends meet. This started Wednesday morning when LEH posted earnings and it's plans to reorganize and the market didn't like it. Shortly thereafter, LEH had little to no equity to back up it's paper being shuffled and traded from firm to firm....the book on this stock was 26 last week after posted earnings..MER's was 29 with almost identical balance sheets..what's the difference between MER and LEH? LEH got hit before MER did..although, it was in good faith, it was a mistake for Fuld to preannounce earnings. It forced LEH into a corner to make an impossible deal in an extraordinarily short time with no position of strength to bargain from. But, hindsight is 20/20. IMO had MER's stock gotten hit like LEH's did first...and it was coming, that was the next target..it would have been LEH being bought and MER posting chapter 11. This was all about timing IMO. No more, no less. On the positive, but, probably a pipedream at this point Chapter 11 allows the company to continue to function and allows the remote possibility that it may emerge from bankruptcy. Also, I'm sure there is somebody with deep pockets somewhere that wants to pick up the scraps on the cheap. 2 bucks a share probably doesn't sound so bad to Fuld and LEH right now.
-Dave-
I just love all the folks that haven't strayed off of a pinksheet stockboard in months who, for whatever reason, have become Wall Street big board wizards overnight and show up here to brag about their doubtfully huge short positions and 'lol' at people...gimme a break...that farce in itself is worth a LOL! I'm truly sorry for all the people who were actually invested in this that may have lost money.
-Dave-
I haven't heard...I think there is some slim hope that one of the hedge funds still might buy Neuberger Berman..but, it's obvious that a sale of the entire firm is a pipedream at this point.
-Dave-0
It's looking like the Merrill deal is what they came up with to 'save' the markets...Throw LEH to the wolves and the buy/merge with Merrill will provide the buoyancy/hope the overall markets might need. The markets love mergers ya know!!
-Dave-
This is like taking your date to the club for the evening and she finds someone else she likes better, ditches you and leaves the club with someone else....wow..that's some dirty stuff.
-Dave-
You're welcome...I guess..:))..All I know is that it is gonna be a long night..averaged in just above 4 late friday afternoon.
-Dave-
This one came out within 5 minutes of the other??? Which is correct?
-Dave-
http://www.cnbc.com/id/26627641/for/cnbc/
NEWS------doesn't look good...or it could be the field narrowing.
-Dave-
http://www.cnbc.com/
Good post martingale...IF this deal gets done the offer PPS will be much higher than what it is currently trading at. The stock overreacted plain and simple. IMO anything positive that may come out tomorrow or today could trigger one of the biggest short squeezes in history..hopefully they were smart enough to cover Friday afternoon. We'll see..
-Dave-
I found a stranger one....and this is the correct answer to the question along with verification to the post. Gotta love the fearmongering.
-Dave-
Post:
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=10602&tid=177523&mid=178183&tof=-1&rt=1&frt=2&off=1
Verification:
http://pinksheets.com/pink/quote/search.jsp
These are corporate backed/asset backed bond securities...they have nothing to do with what is going on now and were there months ago. Interesting find though.
-Dave-
Brent Crude just broke 100...will WTIC and then NATGAS follow?? Not even going to ponder a guess on that one! Hahahaha!!
-Dave-
Nope...not from me either...and yes. Very interesting.
-Dave-
BP: US Gulf Production Shut-In, Personnel Evacuation By TueLast update: 9/9/2008 11:50:09 AMHOUSTON (Dow Jones)--BP PLC (BP) said Tuesday it's shutting down production in the Gulf of Mexico and that all personnel will be evacuated during the day ahead of Hurricane Ike. BP, one of the largest oil and gas producers in the Gulf, was in the process of restoring production after Hurricane Gustav forced oil companies in the area to shutdown output and evacuate personnel. Ike is forecast to cross the southern Gulf of Mexico before making landfall along the coast of Texas near the Mexican border on Saturday, according to the National Hurricane Center. -By Isabel Ordonez, Dow Jones Newswires; 713-547-9207; isabel.ordonez@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=Mn44SV778ieEBBF7fJJz4Q%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones NewswiresSeptember 09, 2008
I think they should....I don't see how they couldn't be. The only question is what is already priced into the market.
-Dave-
I'm still holding though...production is still gonna be shut in again. I want to give it at least till wednesday or thursday.
-Dave-
Looks like they're pulling the track further south...is that the reason we're suckin' wind this morning??
-Dave-
Hahahaha!! Didn't you tell me that's what you were told during one of your phone calls with him? What's funny is that is the only thing he is disputing...He chose that to take issue with..I guess everything everyone else says about him is the truth...classic!
-Dave-
What I think is that I don't know what to think whenever I try and get inside their heads. Where the million dollars comes into play is that once they raise over a million dollars in capital through share selling within a 12 month period there are certain forms that they have to file with the SEC...doesn't mean they won't cross that threshold..I just don't think they want to. But, as I've said on many occasions never underestimate the power of human greed. In any case they hit the market with alot of shares today and IMO the market took it rather well...we've been trading at .0004 for what? Almost a month now? We only dropped a tick on today's volume. That may not mean much to some but, it means alot to me. Regardless of what some may say there was alot buying support at .0003 on the heaviest volume we have seen since March or April. They definitely turned on the faucets. If they don't hit us with another 100m shares within the next few weeks today WAS the reversal. If they do, then all bets are off as far as I'm concerned. However, I'm not getting my hopes up..I think they'll hit us again..I just hope they have the sense and the decency to wait until the PPS is higher. Whatever the case may be, I don't care if it was EESO or PISSO, I would have bought on the signal I saw today regardless of what the company was all about or who was running it.
-Dave-