Tuesday, April 1, 2008

Getting Short Lehman

The time has come to get on board the Lehman short train. Lehman could very well be the next or new Bear Stearns. Are they going out of business, not with this Fed, but a look at their balance sheet would make the most seaworthy among us 'toss his/her cookies' so to speak!

Let me get this straight, the CEO comes out denying liquidity and capital problems. Now they come to market with a 3 billion convertible preferred with about a 7 coupon that will dilute existing shareholders, and the stock rallies. Why are they issuing this paper when a)they have access to mucho money at the discount window, and they have ample capital as their CEO maintains.

All the bottom calling bulls point to the UBS news, the Lehman news and the Deustche Bank news of losses while the market rallies as verification that the bottom is in. I will say this, this better be the end of the losses because if they continue to come, which I believe they will, the panic will be special.

I am getting short 2 units here at $41.50 with a stop at $43.30

In other housekeeping notes, I was stopped out of my 1 unit position in EEV at $79.40 for about a 3pt. loss.

Good speculating to you all.

Open Positions:
Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 1 unit Ultrashort China25 ticker FXP @ $84.55 stop at $84.85
Long 4 units Ultrashort Dow 30 ticker DXD @ $58.00 stop at $53.10
Long 2 units Ultrashort Real Estate ticker SRS @ $92.85 stop at $89.65
Long 2 units Ultrashort Financials ticker SKF @ $102.20 stop at $98.70
Short 3 units of Deutsche Bank ticker DB @ $117.15 stop at $119.40
Short 2 units Citigroup ticker C @ $23.45 stop at $25.40
Short 2 units AGCO ticker AG @ $61.00 stop at $62.75
Short 2 untis Daimler AG ticker DAI @ $86.20 stop at $88.05
Short 2 units Lehman Bros. ticker LEH @ $41.55 stop at $43.30

No comments: