Lehman (LEH) Shares Flirt With Bear Stearns Armageddon Levels
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After opening down only modestly on news of a possible $3-$4 billion capital raise, shares of Lehman Brothers (NYSE: LEH) have continued to drift lower and are now down 5%.
Shares of Lehman are now flirting with the levels not seen since the Bear Stearns fallout. On March 17th, the Monday after news that Bear Stearns would be bailed-out by the Fed and JPMorgan, shares of Lehman sank as low as $20.25 on rumors they could be next. Reassurance from the company that liquidity was strong, in addition to the opening of the window by the Fed to investment banks, helped the stock recover to close that dreadful day at $31.75. The shares continued to climb after that, as Q1 earnings from Lehman showed that things weren't as bad as some had feared. That was until recently however. After recovering to about $50 per share, the stock is now back down to $32.
The major negative catalysts driving Lehman shares lower recently have included: short-seller David Einhorn headlines about the company's accounting for losses, major layoffs, analysts taking down estimates, realization that revenues/profits will be hard to come by for some time as a lot of business has dried up, no more fed rate cuts, today's reports of another capital raise.
Shares of Lehman are now flirting with the levels not seen since the Bear Stearns fallout. On March 17th, the Monday after news that Bear Stearns would be bailed-out by the Fed and JPMorgan, shares of Lehman sank as low as $20.25 on rumors they could be next. Reassurance from the company that liquidity was strong, in addition to the opening of the window by the Fed to investment banks, helped the stock recover to close that dreadful day at $31.75. The shares continued to climb after that, as Q1 earnings from Lehman showed that things weren't as bad as some had feared. That was until recently however. After recovering to about $50 per share, the stock is now back down to $32.
The major negative catalysts driving Lehman shares lower recently have included: short-seller David Einhorn headlines about the company's accounting for losses, major layoffs, analysts taking down estimates, realization that revenues/profits will be hard to come by for some time as a lot of business has dried up, no more fed rate cuts, today's reports of another capital raise.
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