Comments on: Value of Lehman Ex Asset Management Business May Be Negative http://www.nakedcapitalism.com/2008/08/value-of-lehman-ex-asset-management.html Mon, 23 Nov 2009 02:08:55 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: burrite http://www.nakedcapitalism.com/2008/08/value-of-lehman-ex-asset-management.html#comment-13194 burrite Tue, 19 Aug 2008 15:27:00 +0000 http://www.nakedcapitalism.com/2008/08/value-of-lehman-ex-asset-management-business-may-be-negative/#comment-13194 Of course the value of the biz ex-asset mgmt isn't neg, but it's easy to see how it could be worth less than the net debt. <br/><br/>Unfortunately, given the opacity of financial disclosure, all the QSPE's, all the "contingent" asset sales, and lack of fair market value accounting, there is no way for a non-insider to make even an educated guess at the sum of LEH's net liabilities. Which is, of course, why no intelligent arms-length investor is willing to touch the stock with a ten foot pole.<br/><br/>Sorry, Dick, selling Neuberger is not going to be a magic pill to unlock value. The only way to do that would be for you to resign and allow a new executive to come in (preferably someone who hasn't spent the past yr making demonstrably false statements to investors) & give a credible accounting of the fair value of LEH's assets & liab's. Of course the value of the biz ex-asset mgmt isn't neg, but it's easy to see how it could be worth less than the net debt.

Unfortunately, given the opacity of financial disclosure, all the QSPE's, all the "contingent" asset sales, and lack of fair market value accounting, there is no way for a non-insider to make even an educated guess at the sum of LEH's net liabilities. Which is, of course, why no intelligent arms-length investor is willing to touch the stock with a ten foot pole.

Sorry, Dick, selling Neuberger is not going to be a magic pill to unlock value. The only way to do that would be for you to resign and allow a new executive to come in (preferably someone who hasn't spent the past yr making demonstrably false statements to investors) & give a credible accounting of the fair value of LEH's assets & liab's.

]]> By: S http://www.nakedcapitalism.com/2008/08/value-of-lehman-ex-asset-management.html#comment-13176 S Tue, 19 Aug 2008 12:36:00 +0000 http://www.nakedcapitalism.com/2008/08/value-of-lehman-ex-asset-management-business-may-be-negative/#comment-13176 UBS was out yesterday saying that they would sell the Ibank if they could. They are already seoperating the units in anticipation of a sale. So LEH is not the only bank for sale. UBS aruably has a better franchise globally, so it is not as if LEH is the only game in town. UBS was out yesterday saying that they would sell the Ibank if they could. They are already seoperating the units in anticipation of a sale. So LEH is not the only bank for sale. UBS aruably has a better franchise globally, so it is not as if LEH is the only game in town.

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