Message: Lehman, pennies and pink sheet activity-traders continue to speculate
Speculation is all the rage.
EDIG looks like a sure thing when comparing the risk-reward...lol.
Lehman Surges a Year After Collapse
09/14/09 - 01:30 PM EDT Leave a Comment
Dan Freed 
NEW YORK (TheStreet) -- Lehman Brothers' shares were up nearly 45% the day before the anniversary of the investment bank's historic Chapter 11 bankruptcy filing, changing hands as quickly as they have done all year.
Lehman has $6 billion in cash and hundreds of billions of dollars worth of claims against it, but traders continue to speculate in its shares, as they have done for other zombie companies like Washington Mutual, Freddie Mac (FRE Quote)and Fannie Mae(FNM Quote).Trading
in Lehman and WaMu shares picked up noticeably on August 28 following a month-long rally in Fannie, Freddie and other distressed-but-solvent names like AIG (AIG Quote), Citigroup(C Quote) and CIT Group (CIT Quote).
The speculation on Lehman has attracted serious traders including Jon Najarian, co-founder of OptionMonster.com. The recent surge of interest peaked at 125.6 million shares on August 31, then died down somewhat. Daily volume totals have stayed below 25 million since September 2.
Monday, however, was a different story, with more than 52 million shares already changing hands on the Pink Sheets over-the-counter electronic exchange by the early afternoon. The stock was quoted up nearly five cents to $0.15.
The rally defied a report from Reuters, which cited court documents stating Lehman's senior-most group of bondholders could be owed as much as $73 billion. The report also noted that Lehman's London branch alone could owe as much as $100 billion, and that unsecured claims against Lehman are trading at about 20 cents on the dollar.
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