Thursday, September 11, 2008

Lehman Brothers Stocks - Good Stocks to Buy ?

Lehman Brothers Holdings Inc. is one of the leading company in investment business. LEH is the symbol of Lehman Brothers stocks.

Every professional in investment world wants to work for Lehman Brothers. So only the best who are able to work for Lehman Brothers. But why the Lehman Brothers stock price has plunged from $67.73 per share to $7.25 per share ?

There are two main reasons :

  • Lehman Brothers takes huge losses because of real estate investments.
  • Investors are losing confidence in stock market caused by subprime mortgage crisis.

Two hopes for Lehman Brothers stocks price to increase :

  • Dick Fuld the CEO of Lehman Brothers. Will he come up with a great plan which could gain investor's confidence back ?
  • US Government. Would US Government takeover Lehman Brothers like they did with Fannie Mae and Freddie Mac ?

So, is Lehman Brothers Stocks a good stock to buy ? it depends on your view about whether Lehman Brothers can survive from mortgage crisis in the long term or not.

Please don't make the decision solely based on Lehman Brothers stock price,$7.25, because the stock price could be lower to zero and never increase again. It is hard to invest in stocks, isn't it ?

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