Wednesday, November 26, 2008

Legg Mason shorting opportunity...

Hat tip to Notable calls

Apparently LM's debt covenant stipulates it cannot exceed a debt/EBITDA leverage of 2.5 and giving the companies recent earnings track record (see Bill Miller's 2008 implosion). Ultimately LM could find itself in violation soon (that would cost them more than $550 million dollars..ouch)

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