Replies to post #1873 on Lehman Brothers Holdings Inc. (fka LEHMQ)

[Churak]

Well, IMHO, the LEHMQ, cause of the liquidity & the fact that it can trade 100 mil shares/day or more. The prefs, IMHO, should be played for a payout at the EOD and, if possible, selling enough to ride freebies. A payout of .05 on the dollar on a $25.00 pref share is $1.25/share...isn't that the objective on the pref & hence the lotto play? Heck, even a .01 payout on the dollar is .25/share on a $25.00 pref.

Different strokes for different folks but it's all good.

[breezin_chs]

Joe and others, thnx for your insight on the preferreds.

One way of looking at it is what has a better chance to double from here on a swing trade? LEHMQ from 20 cents or one of these preferreds from 10 -15 cents?

Under these weird circumstances, wouldn't the deciding factor be the Short Interest?

http://www.shortsqueeze.com/?symbol=leh

If these figures are accurate, the SEC is telling us that 11.40% of the float - 76,855,700 shares - MUST be covered in 1.4 days from Friday.

Then again, the bets against the Preferreds must be covered. LEHLQ (drop the Q in the symbol box): Consider the 59,900 shares short with the low avg vol of 50,700.

New territory.

Thoughts?

[ThurstonHowellThe3rd]

Joe - could you provide your thoughts on this, please?
thanks,
Thurston

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_L/threadview?m=tm&bn=10602&tid=222696&mid=222717&tof=2&frt=2

d.wagner55 says:

These shares were .01 on Friday, they are up to about .15 now. This is a trust originated preferred security (classified as a debt), with special tax rules. Even though they might not be paying the 6% distribution (not likely in BK) the owner (you) would be responsible for 31% witholding on that distribution and any taxes owed on income you were not getting. All that based on the par value of $25.00. Owning them could be wildly expensive. Read the perspectus, buy with caution.
p.s. They were being dumped because nobody wants to pay taxes on money they did not get, and it is almost the end of the quarter. Owning them on the wrong day at the end of the quarter makes you responsible for the taxes.