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You're so right, scoreoneortwoorthreeorwhatever.
Over 5 years of coupon deferral, nobody on this Board has ever thought of contacting JPM about their role as CT Trustee.
It's all about the bashers...LOL!!!
mojo
j dub,
Then, the 1000 shares would have a balance sheet of the $17B in LBI assets we were discussing earlier.
211 shares would be about $3.587B from an undisclosed 3rd party.
Any idea of the valuation of the deal or the amount the 3rd party was actually willing to pay?
Why wouldn't the Judge disclose this information? Why all the secrets?
mojo
stockmojo9 is stockmojo9.
The one and only.
mojo is the signature.
Others may imitate, but they can't replicate!
Thank you.
mojo
Thank you, jersey!
Joe,
The CTs are classified as equity and a 10B claim by the Debtor POR.
I have never disputed this to be the case.
The junior bonds or subordinated debt that make up half the trust are not classified as 10B.
I have no other response to you at this time as I gain nothing in debating with you the speculation involved in this bankruptcy process, CT prospectus and POR.
regards.
mojo
Not true, Joe:
"The underlying bonds have been replaced by a claim against the lehman estate as outlined by POR. The paper you hold only gives you a claim on the proceeds of any recovery they may see, which is estimated to be ZERO."
That is not true! The junior bonds have a $600M claim against the Estate & I think the claim has a pay out of 19% - 29%+ under the POR as is their class.
I've never heard it as ZERO because it isn't ZERO!
good luck,
mojo
On 5,800 acres?
I'd imagine that's a lot of land to build condos, homes, hotels, golf courses, coffee farms, etc.
I have no idea what is being planned or what the local planning commission will ultimately approve.
REITs do that kind of land banking.
mojo
Argus,
Is the REIT dream dying while they keep a bunch of old planes in hangers?
mojo
Interesting, wayner.
I'm not surprised by your posting or your involvement in the CTs.
I invested in a Russian Oil & Gas Company a number of years ago. I liked it's exposure to emerging markets, emphasis on philanthropy with the Russian Government as well as investing in projects that were to serve the Russian Navy as a client.
It also did huge volume at the time. Then, it went dark: no press releases, reverse splits, down to a nickel.
I asked the SEC about the company and they made a note of my inquiry.
I still hope but there is nothing I can do about it.
What I like about Russia is that they know what it's like to manage a huge natural resource region amid a lot of diversity. The Russians may not have the same solutions as the Americans, but there could be a lot of growth if the countries can find good solutions together.
mojo
wayner,
Just to answer your question:
Bonds 101 -
Bonds don't always trade at nominal or face value.
Face value of bonds are $1000 and the interest rate changes on the rating, etc., and there is an inverse relationship between interest rates and the price of bonds.
A $1000 bond could pay a 6% or $60 coupon per year for 30 years. If it traded at face value, the yield would be 6%.
But, today's low interest rates move bond yields down and it isn't unusual for a quality bond with a high rating to trade at a lower yield.
So, a 6% bond could trade at 4.5% yield. In that event, the bond buyer would pay about $1,333.33.
That is a quick response to your questions about bonds and there are other computations about bond duration and risk management that the bond market uses to trade bonds.
mojo
wayner,
How do you value bonds?
mojo
Joe Stocks,
There is little doubt that you, like many financial advisors, attorneys and institutions involved in the case, would propose to liquidate all the assets to an institution of your choice and leave the creditors out to dry.
With all your cutting and pasting, it really comes down to the fact that there are a number of companies that can bring Lehman's book of business under management with employees who need to reach their numbers and want their bonuses expanding their assets under management with Lehman properties.
After all, why didn't Mack appreciate Geithner's advice of selling MS to JPM?
JPM would have down-sized MS by about 30,000 jobs.
Are there merger partners for Lehman assets? Potentially, but they need a great return and supplemental financial products that don't overlap.
Good luck
mojo
The first deadline for asset bidding due tomorrow Tuesday 11/12 with results posted Wednesday 11/13.
Twelve (12) assets.
I wonder how much they'll get.
Anybody know?
mojo
Correction:
The $16.365B number was an aggragate payment amount that I want to correct.
The one asset is closer to $6.2B at 5% over a remaining 5 years or a bid value of about $4.95B.
Another Institutional Placement has a nominal value of over $1B and another 55 years to run at a Variable Rate.
So, it looks like these 2 claims could easily reach the 140% of nominal value or $5.6B in open bidding.
And, this is 2 assets of 88 known to be offered.
So, maybe the $17.3B is a fairly accurate market estimate.
How do they get $17.3B?
One asset they are releasing to market has a nominal value of $3B and coupons of $247.5M per year for 54 years.
I'm getting $16.365B on one asset among more than 80+ in a fixed income market that trades 100% - 120%+ of par.
What I've requested is a balance sheet of an Entity not directly managed by LBHI, not just a press release of securities to be sold that may or may not have value.
mojo
From the 2013+ CFE Doc:
"The information and data included in these cash flow estimates and notes thereto (the “2013+ Cash Flow Estimates”) include
estimates derived from sources available to Lehman Brothers Holdings Inc. as Plan Administrator (“LBHI”) and its Controlled
Entities (collectively, the “Company”). The term “Controlled Entities” refers to those entities that are directly or indirectly
controlled by LBHI, and excludes, among others, those entities that are under separate administrations in the United States or
abroad. A “Debtor-Controlled Entity” is a non-Debtor affiliate of the Debtors that is managed and controlled by a Debtor."
So, I'm going to question the attorneys about the balance sheet availability of a Non-Debtor Controlled Entity.
Thanks, jay dub!
I saw these entries in the 2013+ CFE as well.
Without a list of assets for Non-Debtor Controlled Entities, it is difficult to estimate the quantity & quality of the Cash Flows.
I'll research that document, however, for a definition of Non-Debtor Controlled Entities & Assets.
Nontheless, it seems to be clear it is a subsidiary incorporation that purchased & managed investments of all types and quality with some debtor financing.
If this subsidiary could always be shown to be profitable (i.e.- A > L), then could the Creditors keep it outside the control of the Debtors and off the POR accounting & Balance Sheet?
mojo
Thanks, jay dub!
What is evident by this exercise is the existence of Off-Balance Sheet, Non-Debtor Controlled Affiliate entities that exist for the Estate.
The quantity of these assets is not certain without Non-Debtor Controlled Affiliate financial statements.
Do they exist?
mojo
LBI & LBI Group? Any difference?
I think I'm looking for an LBI Non-Debtor Controlled Affiliate Financial or Operating Statement if available.
mojo
Thank you, Argus, but I was not able to confirm the connection that I believe I should be able to make with the statements.
Maybe I can call Epiq tomorrow and make a request and get something a little different.
Thanks anyway.
mojo
Help please?
I need the latest Estate financial statements.
It was posted some days ago and I didn't save it and can't retrieve it yet.
If you know, could you please post a link or instructions to it?
Thank you.
mojo
Come on, camaro!
If you want to go Grandma's House, sometimes you have to drive 35 and sometimes 65.
Are we there yet?
mojo
I don't know Viva!
I'm hoping for more announcements and press releases and less secrecy from the Judge!
Good luck!
mojo
Using the Common & Preferred share count of 787,200,000 known to be in Escrow, the Lehman total of 33,675,698 is about 4.28%.
At $25 par, this is about $842M in Face Value.
However, there are 27 entries of Lehman shares with Escrow numbers, so there could be issues other than Preferreds and Commons that are planned to be sold.
Could these BK holdings be the "cancer" Barclays didn't want exported to the UK?
Why would LBI hire Miller Buckfire/Stifel Fixed Income to sell these securities if they are deemed worthless or have no assigned value?
I don't see how Barclays could be interested in them now.
I searched a lot of them by CUSIP & Name and they are not found, grayed out & obsolete and no longer trading.
I think the point about the Estate seeking value for everything in a liquidation is valid.
In the case of the Lehman Common, Preferred & Notes, I think the Estate could sell the notes, put the proceeds back into the Estate and use the NOLs to either cancel debt or clear income from tax payments.
I think some of the notes are the Racers.
I think this could bring the Barclays deal closer if there still is one to close without all this stuff hanging overhead and start the fresh accounting.
Why would LBI hire Miller Buckfire/Stifel Fixed Income to sell these securities if they are deemed worthless or have no assigned value?
They all are.
What have you posted?
Your post isn't the only post I read and have questions about?
I don't know anything about half of what they are posting over the past month.
Good luck.
mojo
Adelphia.
Enron.
Calpine.
Mirant.
Lehman.
And, Miller Buckfire/Stifel is going to sell their securities?
Now?
Are they all on the market?
Or only the CTs?
Sometimes it's best to just leave it at it.
wayner,
It is a good point that the CTs were accumulated already by big boys which could have been done years ago for pennies.
It would also be notable the majority of the Cts were kept at recent $.60 - $75 highs since the volume at the $.75 was on 4k or so.
What is speculative is how they'll be used. If a large Estate banker has them, they could be using them as a strategy to recover outstanding instruments and push for repayment of higher priority claims in a liquidation, unfortunately, and not recapitalize the business.
The recent activities of the Government is showing, again, the focus of these financial settlements is not for the creditors but the voting public at large.
I still hope the Tier 1 eligibility, NOL credits and prospectus covenants will provide the incentives to preserve the CTs and reorganize the Estate into a new administration repairing the damage that brought them down in bankruptcy and re-structured for new business.
mojo
Can't get shares?
Price at $.23 all day?
This can be a vicious cycle.
What buying opportunity is it now?
Viva -
You're right, 100,000 shares over a large number of orders could be stacked.
There seems to be confusion in the industry over how this is represented in the lot size if they are all at the same "Ask".
Whether this is market manipulation or not is an interesting question.
If a stock is hot and doing volume, it probably doesn't matter.
If the stock is a preferred issue and re-instated and uplisted, it might make a difference.
It really comes down to recognizing the market and identifying and interpreting market parameters.
Thanks.
mojo
jh & rl -
I'm glad you found it interesting.
Like Job, there are things to learn while waiting.
mojo
rl -
What you are stating is market manipulation if true and it could be as you say.
I will have to check as my online services are not as you say.
Thanks.
mojo
rl -
My only comment is that with 40 sell orders of 2,500 shares each at an "Ask" of $.35, the size would show 100,000.
So, I'm concerned about the price action and lack of volume without a re-instatement of the divideneds.
mojo
rl -
If the "Ask" is hit for 2,500 shares at $.35 and fills, it is assumed the next order at the next "Ask" will be shown and the lot size will change.
You may think there are orders "showing up" and that may be true, but there is an order to it.
My question has been why the price meets the "Ask" upon a filled order and the "Ask" doesn't increase?
To me, something is up!
mojo
Thank you, rl!
I understand why the "Ask" cannot increase until orders to sell at the "Ask" are filled.
In that sense, it is an efficient market.
Why volume is low at this "Ask" price that is so much lower than two months ago doesn't make any sense to me when the story has not changed.
Still, I'm hopeful.
mojo
rl -
If my broker site says a "Bid" of $.23 and an "Ask" of $.35, they will also post a size of 125 x 25 or 12,500 wanted at "Bid" and 2,500 at "Ask".
So, where is the volume of orders keeping the the price at "Ask" and not raising the "Ask"?
mojo
I suppose others are onto other things.
Many of the IDs routinely work with each other while other messages are not responded to.
Frankly, I'm wondering what is actually working here?
This Friday, October 25 will complete the 3rd full trading week after the 3rd POR distribution.
Some have posted a possible settlement could be scheduled a few weeks after the October 3 distribution.
The lack of public announcements confirming the uplisting process for all 4 CTs, if not accountability, is concerning.
Maybe we are waiting on more decisions in the Courts.
mojo
Story hasn't changed.
More distributions have been paid on time.
So,
1. Why does the "ask" continue to stay at $.30 to $.35 and never increase once the price reaches the "ask"?
and
2. Why has the stock dropped from the highs of $.75 to $.65 of two months ago?
Any thoughts?
mojo