Wall Street is now brimming with rumours about Lehman Brothers' possible issue of new common stock to help it meet its obligations following what many believe will be its first quarterly loss since going public.
It won't be a small loss either; those in the know are suggesting that it may top as much as $4 billion; with a market capitalization of $18.7 billion, that's a staggering sum of money. Already down about 50% this year, the stock fell another 8% in trading yesterday as these rumours swirled the Street.
From the perspective of an investor on the side lines, I have to say that this is great news - my apologies to the current shareholders. I'm waiting for the opportunity to pounce on the financials, yes - along with millions of others, and news like this along with the downgrades issued by credit ratings agencies this week, things are looking rosy. The question is, of course, when is the right time to buy?
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