Posts filed under “Valuation”

Updating Lehman Sell Call

2 weeks ago, we reiterated a previous Sell on Lehman Brothers (LEH). That worked out pretty well. Even with the Dow up 160 points today (after falling 1,000 points in only 14 trading sessions) Lehman cannot catch a bid and remains under pressure.

The LEH news is the management shuffle — CFO, COO out. I suspect more heads will roll, including Fuld’s. The bottom line is the Short sellers and bloggers were right, management was full of crap, and my friend Charlie Gasparino was –w ell, watch the video below.

Let’s go over the two calls from two weeks ago on CIT Group (CIT) and Lehman (LEH): 

CIT is a break-even — you lost nothing by avoiding the stock. The Lehman Sell call was a jumbo winner:

If you avoided the stock, well, good for you! You stayed out of trouble;

If you sold it, Congrats! You just saved yourself a 30+% whackage.

And if you shorted it or bought put options, well, you should be covering half here, and letting the rest ride. Then you should visit this portion of my Amazon wish list. (Pick out something nice !)

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Here’s the breaking news about the first heads rolling at Lehman (more to follow).

Sometime ago, my pal Charlie Gasparino quoted a CEO about how "the shorts were full of bullshit" on air. (were is that link?) or that "the shorts are getting desperate" or "the shorts are full of it."
 

As it turns out, not so much.

Charlie — who is buying me a beer next week — is now on CNBC, breaking the news, discussing Lehman’s CFO and COO, bloggers, shorts, and more. Charlie admits these guys were liars, and that they sandbagged everyone.

click for derogatory video
Gasparino

Previously:
Financial Sector: Beware LEH, CIT  http://bigpicture.typepad.com/comments/2008/06/financial-secto.html
(back up post)

Dirty Tricks at Lehman?   
http://bigpicture.typepad.com/comments/2008/06/dirty-tricks-at.html

Lehman posts Jumbo $3B Loss; To Raise $6B http://bigpicture.typepad.com/comments/2008/06/lehman-posts-ju.html

Chart(s) of the Day: Bear Stearns & Lehman Bros    http://bigpicture.typepad.com/comments/2008/03/charts-of-the-d.html

Category: Corporate Management, Credit, Earnings, Short Selling, Valuation

Sell Rating on Brokers

Category: Corporate Management, Credit, Derivatives, Earnings, Valuation

Lehman posts Jumbo $3B Loss; To Raise $6B

Category: Corporate Management, Earnings, M&A, Valuation

Follow Analysts at Your Own Financial Risk

Category: Earnings, Trading, Valuation

Herb Greenberg’s 5 Simple Lessons

Category: Earnings, Financial Press, Investing, Legal, Valuation

Odd Data Point: Tech Passes Finance in SPX

Category: Earnings, Finance, Index/ETFs, Markets, Valuation

Buffett Sees ‘Plenty’ of European Acquisition Targets

Huge, nearly an hour long Buffett video, via Bloomberg:

click for  l o n g  video
Buffett_euro_ma

Billionaire Warren Buffett speaks at a news conference in Frankfurt at the start of a four-city European tour about his investment strategy and plans to add European companies to the portfolio of his investment and holding company Berkshire Hathaway Inc. Eitan Wertheimer, president of Israel’s Iscar Metalworking Cos., also speaks.

See also:  Buffett’s Shopping Trip to Europe Draws a Crowd

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Source:
Buffett Sees ‘Plenty’ of European Acquisition Targets: Video
Bloomberg, May 19 2008

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1JKvEK68ZUU

Category: M&A, Valuation, Video

S&P500 Profits Ex 3 Oil Cos = Awful

Category: Earnings, Energy, Valuation

Confessions of a Short Seller

Category: Psychology, Short Selling, Trading, Valuation

Only 5% of Wall Street Recommendations Are “SELLS”

Category: Investing, Psychology, Valuation