Lehman Brothers Holdings Inc. (fka LEHMQ)

[Joe Stocks]

INSTEAD OF BUYING THE COMMON, buy the preferreds. If you are more interested in the final outcome the preferreds give you a better seat at the bk table. Buy the preferred trust shares and you get even get a better seat. What is really, really od, is the preferreds are now selling for les than the common. I have never seen that before.

I bought some LHHMQ yesterday for 2 cents. A partial fill to an order. Volume is low on these. I was lucky as my bid was higher and the other remainder of the order did not get filled.

Anyway, these preferreds have a face value of $25 a share. I paid $160.00 for them. I have a claim in the bankrutcy for unsecured DEBT for $200,000.00. That is not a misprint. With common shares you simply get what is left over. The unsecured debt needs to be paid in FULL before the common gets anything.

So, why buy the common shares here for anything other than pinching out some possible pennies in a daytrade when the preferreds are cheaper and trade just like a stock?

I currently have about 100,000 shares with and average cost of .18 cents per share, or $18,000. I am going to let it ride. My claim in bankruptcy court is for $2.5 million. If the unsecureds are paid just 10 cents on the dollar that is $250,000.