How Analysts and the Media Screwed "Investors" with Lehman Brothers

This is How Analysts and the Media trick people into buying stocks when the institutions are selling and exiting from their positions. Many Analysts Firms go through this process of Writing Reports, Changing Price Targets, Upgrades and Downgrades and Appearing on TV to promote their clients interests. They are getting out when you are getting in. Here is just one such story.

The talk on and off the street is none other than Lehman Brothers. LEH has dropped over 80% from last year. The Stock has been on tailspin due to Ultra Leverage from a Massive portfolio of Mort age Backed and Real Estate Securities that are all but Illiquid.

Dick Bove, Analyst with Ladenburg Thalmann made a Brilliant call telling people to Buy LEH around $20 on the rumor that a South Korean Bank may want to "Buy out" the stock. He notoriously and wrongly called the bottom of financials on every business news channel (CNBC, Bloomberg, who actually watches Fox?)at the Beginning of the real financial calamity. This was months Before the Government was Bailing out Fannie and Freddie, taking over Indy Mac, and Lehman Brothers troubles today.

Bove's job is to help the institutions get out of their LEH shares and get dumb people into them. It is NOT to help the Public Make money by doing what he advises.

Bove's ratings on the stocks he covers is actually designed to encourage people to invest more and more money into their losing trades.

This guy literally has people selling the lows and buying the highs.

How does this Happen?

Step 1. This nice Looking old man who looks like Santa Claus in a Business Suit Comes on CNBC.



Step 2. He Tells you why the Financials should bottom now as they are rallying. Bove says the financials will lead a turn around in the economy of 6 months down the line, so buy now. This no time to sit on the sidelines. The Rally is BIG. But the Rally is NOT Based on Fundamentals. You Buy, the stocks go up for a few days, then it starts going down and fast.

Step 3. Bove says buy more. He publishes antoher glowing report. He Does even more TV interviews. He liked it at $80. He loves it at $40. And At $20 its a steal. Now LEH is at $7. Who knew Making money was so easy.

Here are Boves calls on LEH. From Punk Ziegel to Landburg Thalmann he was always wrong for anyone actually following his calls. Source: www.Briefing.com

29-Aug-06 Punk, Ziegel & Co Down Buy/Mrkt Perform $117/127
12-Jan-07 Punk, Ziegel & Co Reiterated Accumulate $84 $91
05-Mar-07 Punk, Ziegel & Co Down Accumulate/Market Perform
14-Mar-07 Punk, Ziegel & Co Reiterated Market Perform $91 $81
12-Jun-07 Punk, Ziegel & Co Reiterated Market Perform $81 $86
18-Jul-07 Punk, Ziegel & Co Downgraded Market Perform Sell
07-Aug-07 Punk, Ziegel & Co Reiterated Sell $86 $59
15-Nov-07 Punk, Ziegel & Co Upgraded Sell Market Perform
04-Dec-07 Punk, Ziegel & Co Downgraded Market Perform Sell
14-Dec-07 Punk, Ziegel & Co Reiterated Sell $68 $61
04-Feb-08 Punk, Ziegel & Co Upgraded Market Perform Buy
08-Feb-08 Punk, Ziegel & Co Reiterated Buy $61 $71
29-Feb-08 Punk, Ziegel & Co Reiterated Buy $71 $65
19-Mar-08 Punk, Ziegel & Co Reiterated Buy $53 $51
01-Apr-08 Punk, Ziegel & Co Reiterated Buy $51 $46
21-May-08 Ladenburg Thalmann Reiterated Neutral $48 $38
22-May-08 Ladenburg Thalmann Downgraded Neutral Sell $38 $35
06-Aug-08 Ladenburg Thalmann Reiterated Neutral $27 $23
21-Aug-08 Ladenburg Thalmann Upgraded Neutral Buy $23 $20

LEH Chart-1 year.



By listening to Bove you would have never made any money and lost virtually ever thing you had invested. By using simple risk Management guidelines you would have been out of any losing trades far before they would cost you so much money.