Lehman Brothers Holdings (LEH) - The Other Shoe?

Posted on Do 12 Juni 2008 in misc • 1 min read

Ever since the Fed bailed out Bear Stearns a few months ago, I began to wonder who’d be the next investment bank to fold. It’s looking like the other shoe has dropped and the mystery bank is Lehman Brothers ([LEH]{.small-caps}).

Now I don’t know if [LEH]{.small-caps} will implode like Bear Stearns did, its desperately trying to avoid that and by selling assets to cover its write-downs, but I suspect that [LEH]{.small-caps} will come out this situation extremely bloodied. Still though, Bear Stearns thought it would survive too.

No matter what happens to [LEH]{.small-caps}, its a pretty forgone conclusion that a test of the low (\$20.25) on March 17th is coming!

LEH, 06/11/2008

Any breaks below that low and its over Johnny.