http://www.lehman.com/press/qe/ Anybody have any predictive thoughts on the #'s before the markets start moving?
F’ed. LEH down another 25%…
Yeah, on CNBC yesterday they were saying a Bloomberg survey pegged analysts expectations for a net loss of $2.2B vs. the actual of $3.9B. No bueno.
With no real deal on the cards…except for the Cleanco Spinco plan…which seems like a bunch of spin to me! guess i was wrong on the other thread that the news would be good!
Chairman and Chief Executive Officer Richard S. Fuld, Jr. said, “This is an extraordinary time for our industry, and one of the toughest periods in the Firm’s history. The strategic initiatives we have announced today reflect our determination to fundamentally reposition Lehman Brothers by dramatically reducing balance sheet risk, reinforcing our focus on our client-facing businesses and returning the Firm to profitability.” Why they havent done this before!?!?!?!?!
Good Q strangedays, I think my biggest source of frustration is that they had 6 months after Bear to strengthen their position, and what do they ahve to show for it so far?
Black Swan Wrote: ------------------------------------------------------- > Good Q strangedays, I think my biggest source of > frustration is that they had 6 months after Bear > to strengthen their position, and what do they > ahve to show for it so far? Before “reducing balance sheet risk, reinforcing our focus on our client-facing businesses and returning the Firm to profitability” they should fire all the management and sent them home with 1pence in their pocket!
By the way, I want just add that LEH reported a loss higher that than GMAC with ResCap (a below investment grade group). This is just nooooooo sense.
These reorgs and bd-initiatives are so cyclical. In bullish periods the companies want to “diversify their business platforms” while in tough times they “stick to our core competencies and strengths”. Willy
What is going on with the premarket action? Up 1.33!? Hopefully just short covering…
I don’t see Lehman doing so hot today. A 4B loss? That even includes the 800M they made from hedging. So realistically you can tack on another $1 lost per share. If they finish positive for the day I guess it’ll be because they didn’t entirely collapse.
Syd_RE Wrote: ------------------------------------------------------- > With no real deal on the cards…except for the > Cleanco Spinco plan…which seems like a bunch of > spin to me! > > guess i was wrong on the other thread that the > news would be good! Gotta Love the spinoff reasoning–“We shop around our AM shop and our CRE assets and the market is A LOT lower than the price we want, so what do we do? Spinoff the divisions and effectively sell them to our shareholders at current book value!”
LEH is up at 8.30… what is going on???
Will fall again by the end of the day. This NEWCO business looks fishy, again. Plus no indication merger/takeover…
sid3699 Wrote: ------------------------------------------------------- > Will fall again by the end of the day. This NEWCO > business looks fishy, again. > > Plus no indication merger/takeover… Dont get me wrong, If the NEWCO uses different accounting rules and doesn’t have to MTM, then it could make sense, but you’ll have to ask the new Erin Callan about that…
> Dont get me wrong, If the NEWCO uses different > accounting rules and doesn’t have to MTM, then it > could make sense, but you’ll have to ask the new > Erin Callan about that… The numbers will improve, but, economically, is the investor better off–I don’t think so. I don’t even want to start on accounting shenanigans-- when it suits them classify the security as “held-to-maturity” otherwise somethings else.
We all do that. When a stock goes down we classify it as “A long term investment”
The problem is, they’re facing a liquidity crisis not simply poor appearance. They need real hard cash, not monopoly money accounting profits. If GAAP dollars could save a firm from going under, Enron would still be ruling the world. Analysts know all these things, and a simple switch from MTM accounting is not going to buy them a better valuation.
Black Swan Wrote: ------------------------------------------------------- > The problem is, they’re facing a liquidity crisis > not simply poor appearance. They need real hard > cash, not monopoly money accounting profits. If > GAAP dollars could save a firm from going under, > Enron would still be ruling the world. Analysts > know all these things, and a simple switch from > MTM accounting is not going to buy them a better > valuation. True. However, there is a subtle difference between liquidity and capital requirement. I still think LEH has adequate liquidity, but with a very shaky business model. The capital deterioration has resulted due to loss of credibility; the blame falls entirely on LEH as they tried to game their results with crappy disclosures. The threat is that clients will stop doing business with LEH. Lay-off’s and cutting dividend are only temporary solutions to weather this crisis. Merger/takeover is, to quote Mr. Smith from Matrix revolutions, “Not impossible… inevitable.”