Lehman Brothers Financial SA (LEHNQ)

[etzetrade]

LBHI decided to carry NOLs back for 5 years, I would think the result applying the same utlization of 35% and half for 2003. In this case, it's great.

Under these circumstances, LBHI should have total profit from 2003-8 more than 48B. Also, don't forget, LBHI is also entitled to get tax refund from State and NYC as long as LBHI is still in NYC. It counts about another 10% tax benefits.

Someone might figure out the total profit of LBHI from 2003-8 to confirm the above-mentioned figures. In this case, LHBI does not have to sacrafice NOLs by discouting its value. The negative side is that LBHI is shooting liquidation. If so, most likely this tax refund will go to senior creditors. My figure is around 23.85B ($53B x 45%). Unfortunately, waterfall ends before CTs. By the way, do you know 60B cash LBHI has now include any tax refund?

Moreover, other hope is that LBHI should have more NOLs for 2010. For examples, Wamu increased its NOLs from 2B to 26B due to the cancellation of owners/shareholder with WMB. I believe that LBHI lost its trading arms, it is worth a lot of money. I hope LBHI will take carring forward and then CTs could be saved.

Or, 48B is the reflection of this cancellation.....????? If so, CTs are toast.