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 !)


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

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

Dirty Tricks at Lehman?   

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

Squawk on the Street Appearance (6/12/08)

Here’s today’s earlier CNBC appearance on Market Pulse Check:

click for video

I like David Katz of Matrix Asset Advisors value approach, but we (obviously) have some sector disagreements — that’s what makes a market!


embedded video

Airtime: Thurs. Jun. 12 2008 | :43:0 08 ET

A look at where this market is headed, with David Katz, Matrix Asset Advisors and Barry Ritholtz, Fusion IQ

Category: Media, Video

Media Appearance: CNBC’s Squawk on the Street (6/12/08)

Category: Media

Unemployment Reporting: A Modest Proposal (U3 + U6)

Earlier this week, I received an email from the Real Estate editor of an (unnamed) publication. They wrote: “Just wanted to point out something I read in a Wall St. Journal article that made me think of you immediately. (Home Gauge Climbs Amid Bargains) “April pending home sales—meaning signed sales contracts—rose 6.3% from March to…Read More

Category: Data Analysis, Employment, Taxes and Policy

Future of Financials

As investment banks look to raise new capital and calm the turbulent waves they’ve been riding, the recovery is far from soon, says Meredith Whitney, executive direct of equity research at Oppenheimer & Co.

Click for video

via CNBC

Category: Credit, Derivatives, Video

Fast Eddie Lampert Bets on Housing, Mortgages

Category: Consumer Spending, Real Estate, Trading

Martin Feldstein: U.S. Slipping Into Recession

Category: Economy

Visualizing Data

Category: Mathematics, Quantitative, Technical Analysis

Pensions & Investments: Ranking the blogs

Category: Weblogs

Market Failure, Mortgage Style

Category: Credit, Markets, Real Estate