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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Cal Amari who wrote (13582)	3/28/2008 7:50:04 AM
From: Smiling Bob	Respond to of 19257

LEH - C wants in on their share of cheap puts first or maybe just helping a Brother of the Order of Perpetual Greed unload -- Lehman looks for a reversal Lehman Brothers (LEH) could bounce back Friday on the heels of an upgrade at Citi. Shares of the New York-based brokerage firm plunged 9% Thursday amid rumors that Lehman could, like Bear Stearns (BSC) before it, face a renewed liquidity squeeze as investors flee risky assets. Lehman brushed the speculation off as “unfounded,” and on Friday Citi analyst Prashant Bhatia agreed, saying the firm has “ample liquidity” that will see it through any market downdrafts. He upgraded the stock to buy from hold, citing its attractive valuation and Lehman’s strong performance in the recently reported first quarter. Indeed, Lehman shares have risen more than 90% off their March 17 panic low in the wake of Bear Stearns’ sale to JPMorgan, fueled by the stronger-than-expected first-quarter performance. Still, not everyone was wowed by the firm’s first-quarter numbers. Jesse Eisinger wrote last week in Portfolio that Lehman’s first-quarter balance sheet was festooned with red flags such as increasing leverage that could point to more problems ahead. While Bhatia predicts that “reality will trump fear,” for now it’s not absolutely clear how upbeat Lehman’s reality is. Back to main column