I dont know why you guys are trying to rip OP. The MER deal shows that this trade was not off the mark. Its easy to say, now that leh was found not to be attractive for a buyer that the whole trade was a disaster. But on friday we had heard for months the Neuberger and asset management division hype and their good fixed income desks, it was not even close to unlikely event that LEH would get bought out. MER was within days of the same fate and yet they were purchased at a premium. CDS on LEH were at 700 bps(not even close to junk), market thought they were too big to fail, OP was wrong but so was almost the entire financial world
The whole thing was a crapshoot and had nothing to do with sound trading or investing. Might as well gone to Vegas and put it all on black. At least his drinks would have been free.
i think the ceo's stake in lehman shares was still worth $40 million on friday. is it worth around $2 million now? does anyone know?
Making a call is one thing. Calling everyone on ET an idiot, stupid, burger flippers and touting how much you are up this year certainly is begging for a response when "the greatest trade ever" vanishes over the weekend.
Have you read his posts? The only thing MER deal shows is that it's time to short the f**k out of BAC.
200K shares at average price of $3.74 Friday $748,000 200K shares at average price of $0.00 Monday $ ???