LEHMAN BROS to come out Bankruptcy

[tripods68]

As you may know, I like to invest in distress company for Upside potential. I still owe shares with AIG. The latest news is Lehman Brother should come out Bankruptcy within 18-24 months. I've heard rumors they may come as early as this year. They have $6 billion in cash reserve after selling many of its assets...i'm sure more to come. I'm thinking buying gobbling some shares before the Upside. What do you think?

Lehman hopes for bankruptcy exit within 2 years - Yahoo! Finance


LEHMAN BROS HLD(Other OTC: LEHMQ.PK)
Last Trade: 0.0580
Trade Time: 3:07PM ET
Change: 0.0030 (4.92%)
Prev Close: 0.061
Open: 0.06
Bid: N/A
Ask: N/A
1y Target Est: 8.00
Day's Range: 0.0530 - 0.0620
52wk Range: 0.01 - 66.58
Volume: 8,548,443
Avg Vol (3m): 11,327,400
Market Cap: 39.96M
P/E (ttm): N/A
EPS (ttm): -9.595
Div & Yield: N/A (N/A)

[humandraydel]

When a company exits from bankruptcy their old shares are worthless. If you feel like burning money, I suggest a fireplace.

[banditfist]

I call BS. The litigations have not even begun on all the counter-party to all the derivatives. For all the level 3 assets that they had on their books, there is no way that $6 billion come close to covering the amount of leverage that Lehman was using.

[tripods68]

Help me out figure this out, I assume after a BK do they remain a public company depending who buys the Asset with a new ticker symbol?

[EEinNJ]

I think you're speculating and it's a crapshoot. You'd be taking less risk buying a distressed company that isn't bankrupt. I made a few dollars, about 50% each on Ford and Citigroup, betting on bailouts. I wouldn't touch them now, when it's becoming more apparent that government help isn't helping.

[Broken Arrow]

Even if they were to come back out, I'd have to wonder what their competitive advantage would be? What would be their upside in a shrinking pool filled with over-sized sharks?

Perhaps we'll find out in the near future, and perhaps I'll have a different opinion about it then, but for now, something like this scares the pants off of me.

[tripods68]

BA,

We all in agreement the high RISK/REWARD scenario buying a distressed company like Lehman. I'm still not yet convinced. First all were not even talking about thousand, just maybe a 100 shares (play money).

Its still does not answer my question, what happen after BK proceeding? Is the company become a new company with a new ticker symbol, much the same way Bear Stears was bought by JP Morgan?

The stock is trading .05 cents area. If that stock even rocket to .10 or 15 cents your $100.00 on any positive news about the company the value suddenly rises to $200.00 even $300.00 but can quickly dissappear as fast you can say cha*ching. But is all crop shoot but its no different than going to Reno. You still have to spend gas/meal. But i digress.