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Trading Idea Of The Week 08/25/08 – 08/29/08

Source: http://feeds.feedburner.com/~r/StocksOptionsBlog/~3/372683655/
Posted on Saturday, August 23rd, 2008 | In Stocks to Watch
Contributed by: Daniel Shepard (http://www.navivest.com/blog) -

Lehman Brothers (LEH), which is currently in a bid for its survival, could possibly reward traders handsomely in the coming weeks. The company is apparently shopping itself, as well as trying to sell its asset management division, Neuberger Berman.

Should the company be successful in either of these two avenues that it is exploring, the shares should rally, giving prescient traders in the stock a nice gain.

At Friday’s close of $14.41, Lehman (LEH) currently has a market capitalization of $10.01 billion. The Neuberger Berman division by itself, is believed to be worth $8-$10 billion. Considering its overall market cap, if Lehman (LEH) is able to sell the division, even at a discount to the $8-$10 billion figure, the cash infusion from the sale would be considered a positive and the sale’s announcement should drive Lehman’s (LEH) shares higher.

Traders might want to consider taking a position in Lehman (LEH), or even buying call options to enhance any gains in the stock, if a sale of either the company or its Neuberger Berman division materializes in the next couple weeks.

Last 5 posts by Daniel Shepard

Tags for this Post:
Lehman Brothers, Stocks to Watch, USD




About Daniel Shepard (http://www.navivest.com/blog)
Daniel Shepard is an Equity Analyst with Navivest, a stocks and options trading advisory services company that provides trading ideas on a subscription basis.

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