Lear Set To File For Bankruptcy

Look at the chart below and memorize it well. The fate of countless other high beta, uber-garbage stocks that are lately flying like crazy, schizophrenic Hindenburgs will soon follow in the same pattern. In this particular case: Lear - the nth autosupplier which according to the WSJ is about to file for bankruptcy. The drop from $2.50 to $0.50 in two weeks should be considered all too carefully by all who listen to Cramer and the "buy stocks so GE can go up and pay us our salary for one more year at least" brigade. If you bougt Lear at the peak in the last month, congrats: you have lost 75% of your investment. If nothing else, this simply demonstrates that no matter how hard Goldman or JPM or whoever buys futures and tries to fool investors into a false sense of confidence, fundamentals always catch up with you...and these days it is sooner, not later.

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