I bought LEH on assumption that they will be bought by Barclay's

Discussion in 'Trading' started by riskfreetrading, Sep 16, 2008.

  1. As I wrote in RFT's blog, last night (Sunday to Monday), I read various reports and came to the conclusion the LEH situation and previous week buyers retreat were a tactical move to sell LEH to Barclays later.

    I placed an order to buy LEH (penny) stock. (A cheap call options, with high risk).

    What do you think? who is onboard?
  2. You know, slot machines are much more fun and the girls are prettier. :cool:
  3. could be a winner with the rumors circulating and news in yahoo finance!
  4. I'm long 11k shares from .33 hopefully you're right.
  5. western


    You guys need a better understanding of how bankruptcy works. Yeah, there is a good chance of Barclay's buying leh, but it will be a fraction of the price they would've paid if LEH was still operating, and the proceeds won't be nearly enough to pay off the debt.

    That said, there is always the chance of a dead cat bounce in leh, from $0.20 to maybe $0.40 so you can always try to play that. But in a couple of weeks/months leh stock will be trading at $0.10 and expire at 0 eventually once the bankruptcy proceedings finish.
  6. yeah, i might buy a few hundred shares on a pure gamble note. u got 10 bucks? talk about risk/reward ratio. wow
  7. Daal


    leh par value is $0.10 but I think everybody else ranks first to this shareholder obligation

  8. Maybe you are not aware of some principles of how to buy penny stocks of major stocks such as LEH, AIG, etc, at the "right" prices. My trade made 70% gains.

    I am going to post the reasons/principles on RFT's blog.

    I will provide reason number 1, which if you observed you have made a better entry, in here after I post on RFT's blog. Should be done in the next 15 minutes.

  9. I listed a list of principles on successful purchases of penny stocks of companies such as AIG and LEH.

    One of the principles is bleow, and could have saved our above friend from buying at $0.33. The other principles would have him buy in a better way, at a better time, and know better his reward and risks.

    "Principle 1:

    Never buy the stock before the bankruptcy news is out. You do this because you want the component in the stock price that relates to the probability of no bankruptcy to be filtered out of the stock.

    Therefore you buy the stock only towards the end of the day after the bankruptcy has been announced.

    In the case of LEH, you buy towards the end of Monday. Price was around $0.16


    Principles 2-5 on the blog, The above quote is from the blog.

    PS: I am not including the URL to the blog as reference even if I am quoting from the blog, and even if I know that some of you want to know the URL (since you contacted me via PM).

    I am not include the URL because one particular moderator has more than objected to this. He made threats, defaming statements towards me, and deleted my posts.

    I could have included the URL as I do not give a damn about him even if he were to delete my account (if the particular moderator is reading this, I am telling him to go fuck himself, so that he knows that what I write is what I mean/think, and that I am not and will never be out to kiss the ass of anybody. Sorry folks about the raw material, but you got the idea of what that guy did to me).