Lehman Preferred Series "J" Preferred (fka LEHJQ)

[xZx]

LEHJQ superior to LEHMQ?

here is why i think so:

1. the OS of LEHJQ is only about 14% the size of LEHMQ's: 75.9M vs 553.6M shares, which is one reason the preferreds should outperform on a % gainer basis, and by a wide margin.

http://www.pinksheets.com/pink/quote/quote.jsp?symbol=lehjq#getCompanyInfo

http://www.pinksheets.com/pink/quote/quote.jsp?symbol=LEHmq#getCompanyInfo

2. add in the fact that LEHJQ preferreds should actually be worth something in a liquidation, have a face value of $25, and a 7.95% $1.99/share dividend, and LEHJQ becomes an even more compelling value should a settlement be reached.

3. the capital trusts are also going to pay out ahead of the commons, but in most cases these shares are not as liquid a trading vehicle as the Js, and tend to sell at a much higher price. in other words, while they have longer term value, so far the capital trusts don't appear to suit momentum traders.

so, to summarize: compared to the commons, with LEHJQ preferreds we have greater leverage, safety, value and liquidity. this makes LEHJQ my absolute favorite of the entire lehman brothers group. jmho.