Lehman Brothers (LEH)

Lehman Brothers (LEH)

Postby kennynah » Mon Jun 09, 2008 7:28 pm

09 Jun 2008 11:12 GMT
Lehman to raise $6 billion in capital



NEW YORK (AP) - Lehman Brothers says it will raise $6 billion through a stock issuance, and expects a second-quarter loss of approximately $2.8 billion due to more pain from the credit crisis.

The nation's fourth-largest investment bank said Monday it expects to post a loss of $5.14 per share for the quarter ended May 31. It made $489 million, or 81 cents per share, in the year-ago period.

Lehman says it will raise capital from both common and preferred stock.
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Re: Lehman LEH

Postby winston » Thu Jun 12, 2008 9:50 am

A week after upgrading shares of Lehman Brothers Holdings LEH to a "buy", Merrill Lynch is on the retreat, downgrading the stock back to "neutral."
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Lehman LEH

Postby kennynah » Thu Jun 12, 2008 9:56 am

there has been accounting irregularities at LEH...and MER analysts did not know? that's the value of anal-ist call for upgrades and downgrades... i absolutely disbelieve anything they say regarding target pricings... if at all i listen, it's to know to do the exact opposite.
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Re: Lehman LEH

Postby kennynah » Mon Jun 16, 2008 8:23 pm

16 Jun 2008 12:19 GMT
BULLET: Industry news: Lehman earnings just out


Industry news: Lehman earnings just out, reports loss of $2.8 bn for Q2,
$5.14 per share, as expected.
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Re: Lehman LEH

Postby kennynah » Mon Jun 30, 2008 11:00 pm

my brother lehman, looks like got a technical support at ~$20....open up the 10 year chart to see.... just put in a horizontal support line at $20.... can u see it?
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Re: Lehman LEH

Postby iam802 » Mon Jun 30, 2008 11:55 pm

take a look at the volume as well.

Since July 2007, the volume is much higher than all the previous dates......all the way back to 1999 and beyond.

Not sure if my data is correct. For the last 10 years, the average volume for your brother, Lehman, is about 25million.

But, recent days...the volume goes up as high as 0.22 billion...

Aren't they building some kind of office block in SG?

Hope Temasek or GIC...buy that building rather than invest in Bro. Lehman. (if there is such a request)
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Lehman LEH

Postby kennynah » Tue Jul 01, 2008 12:07 am

your data is correct....this June month alone, (today not counting), has a 1.5billion shares transacted...highest volume ever since its listing....

you are right 802, price alone is not sufficient an indicator to find support... volume is an equally important indicator...

and what the volume is indicating is : f**k and dump this share...at all costs :!: :!: hahaha...

you are good man !!!!

having seen the 10 years chart....i would go have a peek at 1 year daily chart...and review the Volume...it's telling another story....

so i guess....wat i am saying is :

depends on what time line one is looking at investing...then review the appropriate chart
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Re: Lehman LEH

Postby kennynah » Tue Jul 01, 2008 10:20 am

by the way, LEH is trading at ~ 8 year low pricing...
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Re: Lehman LEH

Postby iam802 » Fri Jul 04, 2008 3:37 pm

Quiet day...for some 'opinion read'

----
Lehman's Hedge-Fund Deals Leave Public in Dark: Jonathan Weil

http://www.bloomberg.com/apps/news?pid= ... efer=home#

July 3 (Bloomberg) -- So let's say you're a big shot at Lehman Brothers Holdings Inc., trying to keep your firm from becoming the next Bear Stearns Cos. The stock has tanked. The market has doubts about your balance sheet. What do you do?

One step to avoid would be any action that might create needless public uncertainty about your company's finances, because investors' greatest fear is of the unknown.

So what does Lehman do? It sells billions of dollars of assets to a newly formed hedge fund that:

1) counts Lehman as a significant investor;

2) is run by seven recently departed Lehman executives;

3) is operating out of Lehman's office space, three floors down from the office of Lehman's corporate secretary.

You don't need to know much more about Lehman's transactions with the fund, R3 Capital Partners, to see the problem.


There's no way for outsiders to ascertain whether Lehman's dealings with R3 were at arm's length, as Lehman and R3 say they were. And the last thing Lehman needs is for skeptical investors to be worrying about whether it is engaging in any opaque related- party transactions.

Lehman isn't providing much information about its dealings with R3, and hasn't mentioned the fund in its Securities and Exchange Commission filings. Some details about their relationship have been trickling out in news reports, including a June 18 article by Bloomberg News reporter Yalman Onaran.

Here are the basic facts I was able to gather:

Unidentified Investor

As of June 12, one fund managed by R3 had raised $1.08 billion from a single unidentified investor and was seeking to raise $4 billion more from others, according to a Form D disclosure that R3 filed with the SEC.

Lehman has invested about $1 billion in R3, said Thor Valdmanis, a spokesman at R3's public relations firm, FD. (After he told me this, Valdmanis asked me not to use the information, saying he wasn't authorized to divulge it.)

Later, in a written response to my questions, R3 said it ``is a wholly independent fund and has raised money from a variety of outside investors'' and that Lehman ``is one of several passive, minority investors in the fund.''

A Lehman spokeswoman, Catherine Jones, declined to say whether Lehman was the unidentified investor cited in R3's SEC filing. Jones said Lehman ``has sold approximately $4.5 billion of assets to R3 since its inception in May 2008,'' all of which ``were previously managed by R3 Capital team members when they worked at Lehman.''

`No Control Rights'

Jones declined to say whether the $4.5 billion was how much R3 paid for the assets or the value at which Lehman had been carrying them on its balance sheet. She also declined to say whether Lehman will treat R3 as a related party for accounting purposes. Companies must disclose the effects that any material related-party transactions have on their financial statements, under generally accepted accounting principles.

``R3 is an independently managed fund in which Lehman Brothers is a limited partner and holds a passive, minority stake in the general partner,'' Lehman said in a July 1 statement read over the telephone by Andrew Gowers, a spokesman. ``Lehman Brothers has no control rights, and all transactions are on an arm's-length basis.''

So, what are we supposed to make of all this? Beats me.

We have no idea if Lehman recorded gains or losses on these sales, how much money R3 paid for the assets, where it got the money to buy the assets, or the fiscal quarter in which the sales occurred. We don't know whether Lehman plans to disclose any of this. There is no way to determine with the information available whether this is a related-party deal.

Lack of Clarity

Even with more information, the relationship might not be transparent. The trouble with related-party deals -- if that's what these are -- is that they ``cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist,'' as Financial Accounting Standard No. 57 says.

Under the accounting rules, if Lehman's stake in R3 were 20 percent or greater, this would lead to a presumption that Lehman could exercise significant influence over its policies. In that case, R3 probably would be deemed a related party.

As for the space R3 occupies on the 39th floor of the Time & Life Building in midtown Manhattan, it's in the middle of a 10- floor block Lehman began subleasing from Time Inc. last year. R3 and Lehman say the fund is paying rent to Lehman at market rates.

Letter From CEO

R3's chief executive officer, Rick Rieder, a 21-year Lehman veteran, sent me a letter explaining that the name R3 comes from the phrase ``Reading, wRiting and aRithmetic.''

He wrote that the fund's creation ``was in discussion for years,'' that he won't take a bonus from R3 this year, and that ``a substantial portion of future profits'' will go to a new foundation to support ``improvement in urban education in this country and abroad, a cause I have long supported.''

That's all nice stuff. What's important about R3 to Lehman investors, though, is how the transactions affect Lehman's financial statements. Lehman is scheduled to file its second- quarter earnings report with the SEC later this month.

``Based on the information that's publicly available, you can't tell whether these are related parties, although there are indications there could be significant influence,'' said Douglas Carmichael, the former chief auditor of the Public Company Accounting Oversight Board, now an accounting professor at Baruch College in New York and a litigation consultant.

And there lies the problem: You just can't tell. That won't keep investors from forming their own conclusions. If Lehman doesn't like what they decide, it will have only itself to blame.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Lehman LEH

Postby kennynah » Fri Jul 11, 2008 2:38 am

LEH shares took a huge tumble...~18% (lost about $3.5)

share price is about $16.35....

there was rumour that it is facing difficulties dealing with counter-parties. however, pimco came on cnbc to assure everyone, they are still dealing with lehman...(reminds me of bear sterns again)...
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