Replies to post #78471 on Lehman Brothers Financial SA (LEHNQ)

[jimmyt99]

Goodie, I will posit this to you. Read the prospectus that you are invested in. Full disclosure, I am boat loaded with all four. Towards the end of each document - page 20 or so - it explains what happens in a BK. Easy to research and we get the full monty plus.

I've said before that this play is political - just like WAMU. But dribs and drabs are emerging in both plays that suggest a very profitable outcome. Watch the news, not one who doesn't have a dog in the hunt.

Roll Tide

Go Leafs Go

[Dor]

There’s always one more fool to buy and that’s probably me

[Joe Stocks]

goodietime, Yes. I would suggest selling. Anything over zero is more than the eventual outcome of zero. Who will buy? Dor just answered that. There is always a bigger fool.

Back when Kmart filed bankruptcy, at the end of the process, after all the docs said that common shares would be cancelled, a headline came out saying Kmart would be exiting bankruptcy the next day. Some saw the headline, saw that kmart was currently selling for 20 cents, and thought they would get in on the ground floor. They pulled the stock price up 94% that day. The next day those shares were cancelled and worthless, and the bondholders were given new shares.

In the Delta bankruptcy, even after the the POR was issued showing all current shares would be cancelled and worthless, the stock ran up to nearly $3 on positive headline about the business which had no effect on the final outcome.