Lehman Brothers (LEH) is now in bankrupcy. Will it pull out? Weren’t most of the airlines in bankrupcy a while ago?
Lehman stock price was at 80 a year ago, now at 20 cents. Should I buy 500 shares for 100 dollars?
If it rebounded to 80 in 10 or 20 years, that would be worth 40000.
Under Chapter 11 the company will reorganize and issue new stock. Investors will have to buy the new issue if they want it. The existing stock will eventually stop trading. There is no equity in the existing stock and it is worthless.
