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MONDAY, NOVEMBER 23, 2009
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Bankrupt Lehman Stock Booms in Long-Shot Trading

Bankrupt company jumps sixfold in 'lottery ticket' deals

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(Newser) – Here's a stock tip for you: Lehman Brothers. No, really—the busted financial giant, which had been trading at less than 5 cents a share, peaked at 32 cents last week, with volume hitting 100 million shares in late August after sitting at virtually zero most of the year. The trading, which is taking place privately rather than on a registered exchange, is little more than "tulip mania," one hedge fund manager said. "People have decided it's worth something based on nothing."

Other bankrupted companies, including WaMu and IndyMac, have boomed in recent days as well, reports the Financial Times. "People lost so much money last year, and they are so desperate to recoup their losses, that they are willing to invest in anything," said one investor. "Everyone wants a lottery ticket."

Lehman Brothers headquarters on Sept. 15, 2008, when the 158-year-old investment bank filed for Chapter 11 protection in the biggest bankruptcy filing ever.
Lehman Brothers headquarters on Sept. 15, 2008, when the 158-year-old investment bank filed for Chapter 11 protection in the biggest bankruptcy filing ever.   (AP Photo/Mark Lennihan, file)
Office workers walk past a construction site blocked off by a wall with Lehman Brothers advertised on it, Sept. 17, 2008 in Singapore.
Office workers walk past a construction site blocked off by a wall with Lehman Brothers advertised on it, Sept. 17, 2008 in Singapore.   (AP Photo/Wong Maye-E)
A Wall St. street sign is seen near the New York Stock Exchange Monday, Sept. 15, 2008 in New York.
A Wall St. street sign is seen near the New York Stock Exchange Monday, Sept. 15, 2008 in New York.   (AP Photo/Jin Lee)
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schmidtkoff
Sep 7, 09 9:13 AM CDT
trading privately? sounds more like baiting to me, trying to get the common folk to start buying. everyone may want a winning lottery ticket but only one or a select few, as in a group ticket purchase, actually win. Reply
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SPH
Sep 7, 09 11:33 AM CDT
No shortage of stupidity out there....... Reply
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