Picking up where we left off in the soap opera that has become Lehman Brothers’ (LEH) future, the beleagured U.S. investment firm has once again made headlines today along with the Korean Development Bank (KDB).  We left off a week ago Friday with Lehman supposedly a hostile takeover candidate to be obtained by KDB, and shares shot up from the mid-$13s range to around $16 per share.

Lehman’s share price hovered there until another upward bounce this morning came after a quote from KDB Chair Min Euoo-sung, the former head of Lehman operations in Korea, who again expressed interest in obtaining one of the top 5 U.S. investment firms, difficult though times have been for the company lately.  However, in a new wrinkle, Min discussed creating a consortium of investment interests to buy the firm, generating still more near-term questions.  Cue the organ music to commercial…

Meanwhile, LEH shares continue their free-fall in analyst estimate revisions.  For the past month, 12 analysts have lowered August quarter expectations; the Zacks consensus now stands at -$2.13 per share, where a mere 90 days ago that number was +$1.09.  Fiscal year 2008 (ending November) estimates have been downwardly revised by 12 analysts as well; -$6.30 is now expected, down from +3.29 per share a quarter ago.  LEH is currently a Zacks Rank #5 (Strong Sell).

“LEH” Free Stock Analysis: Buy? Sell? Hold?
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