Out of the Gate: Lehman shares tumble

The stock fell $3.16, or 18 percent, to $14.15. Just after the opening bell, shares touched a nearly nine-year low of $13.75.

The New York-based company said Thursday in a Securities and Exchange Commission filing its Level 3 assets fell slightly, to about $41.3 million from $42 million, but that its total assets dropped by about 8 percent.

Much of the Level 3 assets are comprised of mortgage and asset-backed securities, which have plagued the financial markets for the past year.

As of May 31, Level 3 assets were 6.5 percent of overall assets, compared with 6.1 percent as of Nov. 30, 2007.

Keefe, Bruyette & Woods analyst Lauren Smith said the company's liquidity pool continues to be strong at about $45 billion, compared with $34 billion in the first quarter.

She rates the shares "Market Perform" with a $33 price target.

Speculation has been swirling around Lehman Brothers for weeks that it could follow the path of now-defunct Bear Stearns.

The company posted a $3 billion loss for the second quarter, and recently rumors surfaced that Barclays PLC might buy Lehman at a discount price.

So far this year, shares are down 74 percent.