Is Lehman undervalued?

Goldman Sachs got a lot of credit for sidestepping the credit crunch. But Lehman Brothers avoided the meltdown fairly well itself, and Barron's has taken note. It suggests now is the time for options traders to ease into the stock by selling some puts. The article notes that Lehman puts are pricey now in part because many are protecting themselves against a massive writedown. Who can blame them? But the author argues that the company just boosted its dividend 13 percent and boosted its stock buyback. Not moves one would expect from a company worried about big writeoffs. We've seen some the analysts turn bullish recently, as valuations have dipped. Longer-term, the firm is much more than a bond house.  

For more:
- here's the Barron's article