Replies to post #46261 on Lehman Brothers Financial SA (LEHNQ)

[stockbum9]

What's funny (I hope you think so too) is that the LEH in the symbol stands for Lehman Brothers, which is in the end stages of it's bankruptcy, that being the largest bankruptcy in history. I think most people assume they are dead and buried, but I believe they are going to come back with a "bankrupt this" attitude. Plenty of NOLs available so they definitely make a great candidate for a merger at some point.

This symbol is for the $25 face value Capital Trust (CT) preferred shares. The dividends are cumulative and should be around $10/share on top of the FV since they've been accumulating for about 6 years now.

There are 3 other symbols for similar $25 CT shares, those being LEHKQ, LEHLQ, and LHHMQ.

The CTs haven't received a distribution yet but the expectation is that the next one (Oct 2nd) could be when we do. The distributions are semi-annual and the debtor has paid about $80B to creditors so far. It sounds like they should have another $8B for the Oct distribtution.

[joyceschoice]

RickNagra - A somewhat odd comment since you once posted on the WMIH board.

LEHNQ is a capital trust security along with LEHKQ, LEHLQ and LHHMQ. Dig into some bankruptcy due diligence on capital trust shares and well everything Lehman Chapter 11.

Don't forget to smack or slap the ask while you're analyzing the past several years of information. We certainly need the number of trades to more closely resemble the number of posts on this board.

[MicroKing]

Who cares about where we rank. You need to eat nails for breakfast to invest in a BK company. Most investors have been here for over 5 years. Trying to trade any CT's of Lehman Brothers is plain stupid.

The risk/reward is very extreme and if you understand that, then you can make an intelligent/speculative decision. Lehman Capitol Trust shares have a face value of $25.00 with accrued dividends.

This is not a quick trade for beer money. Volume is very low on a daily basis.

[toogoodfella]

Better get more familiar before you make a decision to buy. Don't be fooled by others. You will hear "slap the ask" or buy the asking price of the lowest of the four Cts. The "slap the ask " have been used here since after the bankruptcy six years ago and some people get trapped in buying.

You will also hear a lie that you will receive some cash every time the scheduled distribution to creditor is coming close.

The only game in this stock is the NET OPERATING LOSS or NOL. This is a tax attribute of LBHI losses of about 55B dollars that is owned by the equity holders.

The remaining asset after the total of 80B is distributed is about 43B while the deficit is still more than 200B after all of the asset is distributed.

Good luck if you like the challenge.
It may take a long wait or it may take sooner if they start to put the NOL into use.