Gambling on Zombie Stocks

The LA Times writes that investors are speculating on busted stocks like Lehman and Washington Mutual that are still trading.
Shares of Lehman have nearly quintupled in the last four weeks despite having some business problem. Some of those problems include having no business or employees.
Still, did I mention the stock? Boo-yah!!

These folks are literally buying shares that are worth less than the paper they’re printed on. If you’ve ever needed clear-cut proof against efficient markets, this is it.

Posted by Eddy Elfenbein on September 28th, 2009 at 11:41 am

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