Fuld eats his own words

from barrons: “RICHARD FULD, LEHMAN BROTHERS’ (ticker: LEH) chairman and chief executive officer, once said he never paid more than 10 times earnings to buy a company. Those words have a haunting resonance now that Lehman’s earnings multiple is less than zero following another multibillion-dollar loss.”

How is that eating his own words?!

How can your earnings multiple be less than zero? I have never heard of a negative multiple.

Think about it brom, negative earnings = negative multiple.

Black Swan Wrote: ------------------------------------------------------- > Think about it brom, negative earnings = negative > multiple. Do you work in the industry? I have NEVER seen this anywhere. Standard convention is to write “NM” (not meaningful) for a negative multiple. This is probably just a case of a reporter being stupid.

bromion Wrote: ------------------------------------------------------- > Black Swan Wrote: > -------------------------------------------------- > ----- > > Think about it brom, negative earnings = > negative > > multiple. > > Do you work in the industry? I have NEVER seen > this anywhere. Standard convention is to write > “NM” (not meaningful) for a negative multiple. > This is probably just a case of a reporter being > stupid. both of you are right. I just put N/A when I model out cos with neg eps. hence, i hate that metric and stick with p/tangible book, EV/sales, and EV/EBITDA

The guys ego got in the way… He could’ve secured some more capital that would’ve kept the firm liquid by selling equity, but decided against it b/c he thought the book or breakup value of LEH was much higher than the price per share he was offered. He told the Koreans their offer was too low, and they walked. I bet he’d give his left newt for that check now.

hearing barclays gets half, bofa the rest

Theres issues with that…no one wants the toxic sh*t…if the fed or other banks dont step in to provide capital to the toxic part…i dont think anyone will walk away with the brokerage/trading/asset management units! think about it…why would GS/JPM put in capital into a company holding rubbish assets while BofA or Barclays walk away with the good parts on the cheap? The flip side is that they might do it only to prevent a ‘fire sale’ of the rubbish resulting in them having to markdown the rubbish they tehmselves own… However, I think its highly likely that no deal is struck and LEH files for bankruptcy!

well, f*** if no deal by monday, the stock goes to 1 buck. they will have to do something. the stock was @ 16 a week agom they did nothing, and it went to < 4. it is either now or never. forced liquidation, piece by piece. where the f is pimp??? prolly in NYC getting jonny blazed and blowing lines.