Speculation has begun that the shares in Lehman (LEH) are so cheap that the brokerage might become the target of a hostile takeover. Not likely.

Dick Bove of Ladenburg Thalmann has begun a "rumor" that Lehman could be bought by a party with enough capital to hold on to the firm’s distressed assets until they recover.

According to MarketWatch, "Bove said a deep pocket buyer could wait until assets mature before they sell them, and could hence sell Lehman’s investment management unit Neuberger Berman for more than the value of the whole company and then basically own Lehman Brothers for nothing."

Even after Bove’s widely circulated speculation, Lehman shares are flat at $13.75, just above their 52-week low and down from the period high of $67.73.

A lot of large institutions and sovereign funds have kicked the tires at Lehman. A number of analysts follow the company. It could be that they are all buffoons. Or, the Lehman balance sheet could simply be such a significant disaster that no intelligent investor wants to buy in at any level above the current price.

There is no pearl deep inside of Lehman.

Douglas A. McIntyre

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