This stock has been in a down trend despite all the rebuttal from the company. The only way you make money in Lehman for the past few months is to stay short or buy puts. If you own the stock or bought calls all you have done is lose money. Just like Bear Stearns the rumours were denied till the company went under.
Stocks just don't go down at this rate just based on rumours, there is some real selling going on by well informed players.
I guess the lesson from Bear Sterns is that the well informed players and the market makers have refined their tactics and what we are seeing here is a controlled wipe out. Just look at the way the stock is traded it stays around 20's for a while and they even took it upwards of 24 all within a week, to create a false sense of hope among the uninformed players.
Look at the financials, this company is levergaed 27 to 1, it just does not take that much to implode with this kind of levergae.
If you are ever tempted to buy, please don't catch a following knife. It is okay to miss the first 10, 20, 30 , 40 percent move, if this thing is really going to go up. It saves you from losing all your money in an implosion.
Just look at Etrade, the rumours and the talking heads were cheer leaders till the stock imploded.
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