Is now the time to sell Lehman brothers stock (LEH) and now the time to buy merrill lynch or Bank of America?Will the stock tomorrow for Lehman Brothers go up tomorrow due to them filing for bankruptcy or will it just fall some more. Also should I buy Bank Of America Or Merrill Lynch tomorrow as Bank Of America just bought them out? |
If no deal overnight, I expect LEH could open down 80-85% on Monday, 09-15-08 at or soon after the open. If they file BK, the stock will eventually trade to zero.
They will prob have a "Dead Cat Bounce" - this is normal and a technical trading theory, but LEH will crash again and work towards zero if no buyer or files BK.
Keep in mind that no bank in the world wanted them even for zero price (free) over the big (09-12/ 09-14-08) weekend. What does that tell you the stock is worth?
LEH is dead. Read all my posts. I have been saying and posting this since Nov 2007.
BAC should fall due to the amount of risk it is taking from the CFC buyout last summer, and now the $44B MER buyout. BAC will soon become another "too big of a bank to EVER fail."
They will be or close to #1 in banking.
#1 in mortage business (after USG).
#1 retail brokerage.
BAC is smart cause if MER or CFC has any liability or debt problems which they both do, CFC and MER can go to the FED Discount Window and borrow money (cheap) because they are a qualifying member bank.
Long term BAC could have a windfall of money once this "crisis" is over.
As for MER on Monday, I expect it to trade up 60% or more based on 09-12-08's closing price. Can you say MASSIVE short squeeze in MER stock, and watch MER options go to a zero delta.
i WOULDN'T DO ANYTHING RIGHT NOW
i could be wrong but if i am reading the writing on the wall i believe it says.
"sever drop in the dow, nasdaq, and nyse tomorrow, portentially 300+ points in the red.
time is over .they have filed for bankruptcy.check it out .BOA has buyout merill lynch .stay away form financial sec tor for while.
I'm very sorry, I think you're a little too late. welcome to Bush's America.
