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0 point posted on 09/15/08

85%

Gerald Greene:

+68.27%
risk: moderate

99.56% Gain. What a Meltdown

I closed out my short position on LEH from $47. April 2008 this morning for a 99.56% gain. Yes, indeed, LEH had a few more surprises in its closet of horrors. You can bet that more than a few other financial stocks will be close behind.

Do not underestimate the serious nature of the on going financial meltdown. An entire financial industry built upon leverage of 30:1 to 40:1 doesn't have much staying power as markets turn against them. Even bigger trouble is just ahead.

Related to:

LEH

Lehman Brothers Holdings Inc

Comments (4)

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allstarinvestor

85%

1 point commented 442 days ago reply

the uptick rule will not prevent shorts from making money and it will not stop bank from going bankrupt. you cant blame poor company management on short sellers

loneranger

38%

1 point commented 441 days ago reply

saying the shorts always win is like saying the longs always win, you can only push a stock down as much as you can push it up

Tom Allen

64%

0 point commented 447 days ago reply

I agree, our flawed financial system has come back to hit us in the face. Fannie, Freddie, Merrill now Lehman. Well done for shorting, i wouldn't be able to do that! I'm not that brave.
This is not the end. Expect to see more banks in bad situations soon.

midg3t

75%

1 point commented 446 days ago reply

very true ,,, unless the SEC decides to bring back the uptick rule more banks will go bankrupt the shorts always win

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Lehman Brothers Holdings Inc (LEH)

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