Naked Capitalism looks at the question "Just How Did Lehman Delever?"
I tracked Lehman’s (LEH) stock action before and afterwards — I don’t pay much attention to conference calls, as I have this regrettable tendency to believe what CEOs and CFOs say to me, most often to my financial detriment. Over the years, I’ve learned to skim the results of the calls, but pay close attention to the stock action.
My sense is the LEH buyers are doubling down, throwing good money after the bad of the $28 convert. Despite enthusiastic buying, the true believers could not get back over the syndicate price.
Which brings us back to Naked Capitalism. Yves has an email from a former Lehman managing director, and its worth reading, if not for the answers but for the questions they raise, about Lehman’s balance sheet exposures, land holdings, and rising compensation expenses during a time of 1,900 layoffs.
In theory, the 10Q should clear some of this up . . .