Lehman stock slide: Analysts, investors weigh in

NEW YORK (Reuters) - Lehman Brothers Holdings Inc shares tumbled further early on Thursday, the day after the investment bank unveiled plans to sell a majority of its investment management unit and spin off most of its commercial real estate loans.

The following is reaction from analysts and investors:

ROBERT ALBERTSON, CHIEF STRATEGIST OF SANDLER O'NEILL IN

NEW YORK:

"The difference between Lehman and Bear is clearly in the balance sheet structure, which made one more vulnerable than the other. In the case of Lehman, they have liquidity and their funding is rock-solid.

"I have not seen any other (markdown) numbers as low as Lehman's," referring to plans Lehman announced on Wednesday to sell its real estate assets.

"We don't know what's on Lehman's balance sheet. All we do know is that there is a tremendous amount of money on the sidelines that wants to invest in distressed assets. They just have to be willing to sell, to swallow lower prices.

"Everyone is overshooting here. I'd argue the liquidity of the firm should be more than adequate."

MICHAEL HOLLAND, FOUNDER OF AND PORTFOLIO MANAGER FOR

HOLLAND & CO IN NEW YORK:

"When confidence starts eroding, you have a self-fulfilling story. It's unfortunate that we're in the kind of position now where events can take over. The stock is telling us that (Lehman Brothers CEO) Dick Fuld is running out of options. Unfortunately for Fuld, who has been very adamant about keeping Lehman independent, he has to find a partner now, someone to acquire them.

"Historically, Fuld has been someone you don't bet against when times (are) tough. This time, things may be too tough.

"The stock price is saying that."

ROBERT LUTTS, CHIEF INVESTMENT OFFICER OF CABOT MONEY

MANAGEMENT IN SALEM, MASS.

"Obviously there's going to be some very fast trading and some rumors.