Checkmate for Lehman?

As painful as it is to see Macro Man's friends at Lehman (LEH) in personal financial distress, it's hard to escape the conclusion that the endgame is near. A record-volume slide into single digits and a current price that's 50% lower than Monday's opening suggests that checkmate is very, very near.

By all accounts, Lehman was considering releasing Q3 earnings after Tuesday's close to stop the speculation; the danger, of course, is that the release merely confirms the market's worst fears. Bear, Fannie (FNM), and Freddie (FRE) provide recent evidence that a single-digit stock price is a death sentence; continuing with the chess theme, there doesn't appear to be a white knight on the horizon to swoop in to the rescue.

The obvious conclusion, barring a shocking development over the next ninety minutes, is that it's back to plan A for the equity bears and back to the drawing board for Team 1250. Strap yourselves in....this ride is about to get (even more) interesting.

Comments

[turkeyeyes:]

Thanks Einhorn for ruining this company. SEC?

2008 Sep 10 06:42 AM

[madasiwannabe:]

You can only cry sale so many times before the market stops listening. When the Korean's announced they were walking away again, the stock was doomed.

Today they will announce more of the same. Not sure how the market will digest what's said, but I think the big boys will let it run up a bit and then put the full press short back on...

2008 Sep 10 06:48 AM

[who:]

the stock was doomed when Freddie and Fannie were nationalized...shareho... will left without nothing.

2008 Sep 10 07:50 AM

[Gerry Sullivan:]

The Lehman plan announced this morning is nothing.
Rearranging the deck chairs on the Titanic is a cliche'
but this is what LEH is doing.
Without a cash infusion this company is doomed.
Check and one or two moves from checkmate.

2008 Sep 10 08:22 AM

[Carousel:]

How is this company doomed? They have unlimited access to the discount window.

2008 Sep 11 12:40 AM

[Carousel:]

How is this company doomed? They have unlimited access to the discount window.

2008 Sep 11 12:41 AM