U.S. to become top oil producer by 2015.... Start The Research Traders
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SMVI..Looking for a retrace here...I can't find any bad news on this for it to be reacting like it is...imo
SMWI...has room to move up...imo
SMVI..on watch for a bounce...
SMVI..on watch for a bounce...
SMVI...014 x .015 ..buys are coming in.
SMVI...014 x .015 ..buys are coming in.
SMVI...1 left .014....now...
SMVI...down 60% now...
SMVI...down 60% now...
I'm looking forward to that. Chart showing oversold.
SMVI...maybe this will bounce...lol..
SMVI....014 x .0145....down 58%..Bouncer ?
SMVI....014 x .0145....down 58%..Bouncer ?
Hey bro whats up...:)
Hey Bro...Still got my shares. Nice post....:) Looking forward to more here.
MMTE Daily Chart. Nice close today with a black hammer. The company has raised the AS to 5 billion last week on 10/15/2009 and it's still trying to run here..imo...
Raise in AS means No risk of reverse stock split now.
PinkSheets.com has been updated within the last 45 days with 4 new filings from the company.
MMTE Daily Chart. Nice close today with a black hammer. The company has raised the AS to 5 billion last week on 10/15/2009 and it's still trying to run here..imo...
Raise in AS means No risk of reverse stock split now.
PinkSheets.com has been updated within the last 45 days with 4 new filings from the company.
Nice day here..we pulled back to .0003 and closed back at .0005.
Yesterday when I bought all those .0005s I thought I might have made a mistake but today has made me think we are going up from here..imo..
It's all bullish day here...Everyone check the chart we should have a black long tail DOJI on today's close...:)
PMDP & MMTE..on watch....:)
PMDP & MMTE..on watch....:)
MMTE Business Activities include Oil and Gas.
The Company’s business is in its developmental stage. To date, the Company’s primary activities include oil and gas development and production. The Company has acquired a working interest in a oil and gas project in Pawnee County Oklahoma.
MMTE Business Activities include Oil and Gas.
The Company’s business is in its developmental stage. To date, the Company’s primary activities include oil and gas development and production. The Company has acquired a working interest in a oil and gas project in Pawnee County Oklahoma.
MMTE Latest Filing From Pinksheets. Filed on Sept 21, 2009.
http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=24478
MMTE Latest Filing From Pinksheets. Filed on Sept 21, 2009.
http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=24478
MMTE...4 MMs left .0005
MMTE...4 MMs left .0005
I think all the weak hands are out by now.
MMTE...yesterday was a panic day. I picked up some .0005s
MMTE.0004 x 0005...looking better today.
MMTE.0004 x 0005...looking better today.
Just hangin out....Whatz going on Bro....
Are we gettin any news soon. I seen it selling off today and pulled the trigger on a boatload of .0005s. I'm thinkin now I should have ask questions first...lol...5 billion AS might work here if the company has some plans in the near near future...
Merrill Lynch’s Castillo Quits; No Replacement Named (Update1)
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By Ambereen Choudhury and Jacqueline Simmons
Oct. 21 (Bloomberg) -- Bank of America Merrill Lynch’s European head of wealth management, Eva Castillo, will leave the firm at the end of the year.
Castillo, 46, is leaving after 12 years at Merrill Lynch to pursue “other career and personal opportunities,” according to a memo from Sallie Krawcheck, president of global wealth and investment management. The bank is seeking a replacement.
Her departure follows that of Daniel Sontag, who ran Merrill Lynch’s wealth management until he was replaced by Krawcheck in August. Robert McCann, who quit as Merrill Lynch’s brokerage head in January, has separately been in talks with UBS AG to become head of its wealth management unit in the Americas, people familiar with the matter said in August.
Castillo worked for Goldman Sachs Group Inc. before moving to Merrill Lynch. She joined the firm as head of equity markets for Spain and Portugal, and has had jobs including running global markets and investment banking in Iberia. She has also served as president of Merrill Lynch for Spain.
A spokeswoman for the bank in London confirmed the memo’s contents today.
To contact the reporter on this story: Jacqueline Simmons at jackiem@bloomberg.net
Last Updated: October 21, 2009 05:54 EDT
U.K. Bonuses May Soar 50 Percent in 2009, CEBR Says (Update2)
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By Ambereen Choudhury
Oct. 21 (Bloomberg) -- Bonuses for financial services employees may rise by 50 percent to 6 billion pounds ($9.9 billion) this year as profit at U.K. banks, brokerages and hedge funds rebounds, according to a Centre for Economics & Business Research Ltd. report.
U.K. finance workers received about 4 billion pounds for 2008, according to CEBR findings released in London today. While the figures show a year-on-year rise, the report also estimates that 2009 bonuses will be 41 percent below 2007’s record figure of 10.24 billion pounds. Even in 2012, bonuses will still be 26 percent lower than in 2007, the report forecast.
“Bonuses are beginning to bounce back but will not reach the levels of 2007 anytime soon,” said Benjamin Williamson, a CEBR economist. “Profits of major financial-sector institutions have jumped sharply; therefore bonuses, which to some extent are a profit sharing scheme, have also risen.”
The British government has tried to assuage voter anger over bankers’ pay ahead of an election which has to be held within the next eight months. It backed Group of 20 initiatives to curb bonuses agreed last month and new rules on pay being implemented by the Financial Services Authority.
News of the report’s findings again stoked a hostile reaction to banker remuneration.
“Instead of awarding themselves big bonuses, the bankers and financiers should pay back the hundreds of billions of pounds that taxpayers spent bailing them out,” said Dave Prentis, general secretary of the 1.3 million-strong Unison trade union in an e-mailed statement. “The financial crisis wasn’t caused by nurses, social workers, paramedics, dinner ladies and other public sector workers - they should not be made to pay the price.”
‘Yachts and Villas’
The bonuses were generated by banks “able to earn bigger profits because there is less competition,” Vince Cable, financial spokesman for the opposition Liberal Democrats said in e-mailed comments. “What is particularly galling is that all their activities are in turn underwritten by the taxpayer.”
It is “monstrous that good businesses are going to the wall for lack of credit, while bankers are using their taxpayer- funded bonuses to pile back into the yachts and the villas,” London’s Conservative Mayor Boris Johnson wrote on Oct. 19. Chancellor of the Exchequer Alistair Darling attacked bankers’ “stupidity” at the ruling Labour party conference on Sept. 29. Bank employees took excessive risks in pursuit of bonuses, leaving their institutions “hours away” from closure, he said.
‘Low-Hanging Fruit’
Royal Bank of Scotland Group Plc, Britain’s biggest government-controlled bank, is planning to pay some employees bonuses of as much as 5 million pounds each, the Sunday Times reported on Oct. 18.
Edinburgh-based RBS has been cutting jobs and reducing its presence or withdrawing from two thirds of the 54 countries in which it does business after posting the biggest loss in U.K. corporate history last year and receiving government funding.
“Whilst 2009 has been a bumper year harvested from low- hanging fruit as a result of government-sponsored liquidity, 2010 is predicted to be better because of the global economic recovery,” Shaun Springer, chief executive officer of Square Mile Services Ltd., which advises London financial institutions on remuneration, said in an interview.
“However the issue of where to remunerate is becoming more important than how much to remunerate,” he said. “There is a lot of talk of expanding in the Middle and Far East at the expense of London because there are clearly fewer restrictions and politically driven agendas.”
London Job Cuts
Credit Suisse Group AG, Switzerland’s second-biggest bank, said yesterday it plans to raise salaries for senior employees as a percentage of total pay. The bank will boost salaries for about 7,000 managing directors and directors on Jan. 1, and introduce deferred equity and cash-based awards whose value will vary based on earnings, Zurich-based Credit Suisse said. The bank is also putting in place a minimum share ownership requirement for members of management committees and the executive board.
The CEBR has said that the global financial crisis has seen the number of jobs in London’s financial services fall by 49,000 or 14 percent below its 2007 peak.
U.K. Financial Bonus Payouts
In billions of pounds
2001 3.9
2002 3.3
2003 4.9
2004 5.7
2005 7.1
2006 10.1
2007 10.2
2008 4.0
2009 6.0
2010 6.7
2011 7.1
2012 7.5
To contact the reporters on this story: Ambereen Choudhury in London at achoudhury@bloomberg.net;
Last Updated: October 21, 2009 07:45 EDT
Deutsche Bank Declines as Pretax Profit Misses Some Estimates
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By Aaron Kirchfeld
Oct. 21 (Bloomberg) -- Deutsche Bank AG, Germany’s biggest bank, fell the most in more than two months in Frankfurt trading after third-quarter pretax profit missed some analyst estimates.
Pretax profit was 1.3 billion euros ($1.94 billion), the Frankfurt-based company said in a statement today. That was less than the 1.53 billion euros forecast by Matthew Clark, a London- based analyst at Keefe Bruyette & Woods Ltd. The number matched forecasts from Morgan Stanley and Bernstein Research while the median estimate of 10 analysts was 1.19 billion euros.
JPMorgan Chase & Co. last week reported its highest profit since the subprime mortgage market collapsed while earnings at Goldman Sachs Group Inc. surged. That raised expectations for Deutsche Bank, which sidestepped the worst of the financial crisis without government aid, analysts said.
“The headline pretax figure wasn’t a blow out,” said Clark, who has an “outperform” rating on the stock. “We need to wait before we can judge the quality.”
Deutsche Bank fell as much as 5 percent and was down 4.3 percent to 52.98 euros as of 11:58 a.m. in Frankfurt trading. The stock has gained 91 percent this year, valuing the company at 33 billion euros.
“After the good figures from Goldman and JPMorgan, analysts expected pretax profit to exceed all estimates, but they didn’t,” said Olaf Kayser, an analyst at Landesbank-Baden Wuerttemberg, who has a “hold” rating on the stock. “Some people on the market are speculating that Deutsche Bank came out with the figures early to prepare for a capital increase.”
Capital Ratio
The bank’s Tier 1 capital ratio, a measure of financial strength, rose to 11.7 percent in the quarter from 11 percent at the end of the second quarter.
Preliminary net income more than tripled, boosted by tax credits and the resolution of tax audits related to prior years, the bank said. Profit rose to 1.4 billion euros from 435 million euros a year earlier. That beat the 811 million-euro median estimate of 12 analysts surveyed by Bloomberg News. All business segments will report positive results, the lender said.
To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net
Last Updated: October 21, 2009 06:16 EDT
Wells Fargo Profit Rises as Bank Limits Damage From Defaults
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By Dakin Campbell
Oct. 21 (Bloomberg) -- Wells Fargo & Co., the nation’s largest home lender this year, posted record third-quarter profit by limiting defaults and wringing savings out of Wachovia Corp.
Profit almost doubled to $3.24 billion, or 56 cents a diluted share, from $1.64 billion, or 49 cents, a year earlier, San Francisco-based Wells Fargo said today in a statement. The average estimate of 24 analysts surveyed by Bloomberg was 39 cents a share.
Mortgage rates are hovering near record lows, helping Chief Executive Officer John Stumpf generate revenue from home lending. Costs tied to the takeover of Wachovia are likely to be less than the estimated $7.9 billion, Stumpf said Sept. 16 at a conference in New York.
“Credit is still an issue for all banks, but Wells Fargo has more flexibility to manage,” Andrew Marquardt, an analyst at Fox-Pitt Kelton Cochran Caronia Waller LLC in New York, said before the results were released. “They are ahead of the curve in realizing credit losses and have strong unimpaired core earnings power.”
The bank climbed 3.3 percent this year on the New York Stock Exchange, making it the ninth-best performer in the KBW Bank Index. The shares rose 39 cents, or 1.3 percent, to $30.46 yesterday. The biggest investor is Warren Buffett’s Berkshire Hathaway Inc., with a 6.5 percent stake.
Wells Fargo is the last of the four biggest banks to report earnings for the third quarter. JPMorgan Chase & Co., ranked second by assets, posted its highest profit since the subprime mortgage market collapsed in 2007. Citigroup Inc., the third- biggest, posted a $101 million profit after adding less to loan- loss reserves. Both are based in New York.
Mortgage Lending
Bank of America, the largest by deposits and assets, posted a $1 billion loss after a rise in consumer loan defaults. The company is based in Charlotte, North Carolina. Wells Fargo ranked third in deposits at midyear with $813.7 billion and fourth in assets with $1.28 trillion.
Profit at Wells Fargo was boosted by selling less complex mortgages after competitors offering so-called exotic loans failed or scaled back, Kathleen Vaughan, the division head of wholesale lending, said in an Oct. 14 interview.
The bank must contend with losses tied to Wachovia’s $89 billion of option-ARM loans, which have some of the industry’s highest default rates. Stumpf previously said the risks have been reduced.
Option-ARMs let borrowers defer interest payments and add them to the loan’s principal; some have low initial rates that increase in later years. The loans can backfire in a recession if monthly payments and balances continue rising while the home price falls. That wipes out the owner’s equity and leaves no cushion for the bank in case of default.
Debt Offering
Improved credit markets helped Wells Fargo raise $2 billion in a debt offering in September, the first sale of bonds not backed by the Federal Deposit Insurance Corp. since the collapse of Lehman Brothers Holdings Inc.
Like Bank of America and Citigroup, Wells Fargo hasn’t returned government bailout funds. The company had planned to repay the U.S. government’s $25 billion “shortly” and in a “shareholder-friendly way,” Stumpf said during a Sept. 1 Bloomberg Television interview.
Mortgage refinancing slowed in the most recent three months after propelling profit to a record in the second quarter. Total originations in the U.S. fell by about 9 percent to $500 billion in the third quarter, according to estimates from Inside Mortgage Finance publisher Guy Cecala. The lender accounted for 23.5 percent of all mortgages in the first half, according to Inside Mortgage Finance.
To contact the reporter on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net
Last Updated: October 21, 2009 08:04 EDT
U.S. Stock Futures Fall as Boeing Drops; Yahoo Gains on Profit
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By Maud van Gaal
Oct. 21 (Bloomberg) -- U.S. stock futures fell after Boeing Co. posted a wider-than-estimated loss and concern grew that a seven-month rally has left equities too expensive. European stocks slid as results from PSA Peugeot Citroen and Deutsche Bank AG disappointed some investors.
Boeing Co., the world’s second-largest commercial-plane builder, slid 1.7 percent after reporting charges of $3.5 billion for delays to its 787 Dreamliner and 747-8 jumbo jets. Ford Motor Co. dropped after Peugeot, Europe’s second-biggest carmaker, posted lower sales. Yahoo! Inc., the owner of the No. 2 U.S. search engine, rose 4 percent as profit beat estimates.
“There have been positive earnings surprises but at a certain point expectations were so low, results could only beat them,” said Joost van Leenders, an Amsterdam-based strategist at Fortis Investments. “You see investors are being struck with doubt about the sustainability and strength of the recovery every now and again.”
Futures on the S&P 500 expiring in December slipped 0.6 percent to 1,083 at 7:54 a.m. in New York after earlier gaining as much as 0.2 percent. Dow Jones Industrial Average futures lost 0.6 percent to 9,945 and Nasdaq-100 Index futures slid 0.5 percent to 1,749. Europe’s Dow Jones Stoxx 600 Index retreated 0.9 percent.
The S&P 500 has rallied 61 percent from a 12-year low in March as the Federal Reserve lent, spent or guaranteed $11.6 trillion to combat the worst U.S. recession since the 1930s. The rebound left it trading at about 20.5 times the reported earnings of its companies, the highest level since 2004.
Earnings Season
Profit has topped estimates at 79 percent of the S&P 500 companies that have posted third-quarter results, including Google Inc., JPMorgan Chase & Co. and DuPont Co. More than 130 S&P 500 companies are reporting this week, with Morgan Stanley and Wells Fargo & Co. set to announce today.
Boeing slipped 1.7 percent to $50.99. The net loss was $1.56 billion, or $2.23 a share, bigger than the $2.10-a-share average estimate of 18 analysts in a survey. Sales rose 9.1 percent to $16.7 billion from the year-earlier quarter, which was hurt by a strike, and compared with an estimate of $17.2 billion.
Eli Lilly & Co. rose 1.6 percent to $35.80 in New York after posting earnings that beat analysts’ projections as sales of its depression drug Cymbalta and lung- cancer treatment Alimta increased.
Ford, the only major U.S. carmaker to avoid bankruptcy, slid 0.5 percent to $7.67 in Germany after Peugeot said third- quarter revenue fell 7.7 percent. Peugeot tumbled 6.3 percent to 22.65 euros in Paris.
Yahoo rose 4 percent to $17.85. Third-quarter profit excluding some expenses was 15 cents a share, beating the average prediction of 13 cents by analysts in a Bloomberg survey. Sales, excluding fees passed on to partner sites, were $1.13 billion, exceeding projections.
SanDisk, Geithner
SanDisk Corp. soared 8.1 percent to $23.21 in New York. The biggest maker of flash-memory cards used in digital cameras and mobile phones forecast fourth-quarter sales that beat analysts’ estimates as chip prices rebounded.
Treasury Secretary Timothy Geithner said the bank capital- purchase program in the $700 billion bailout will be allowed to expire later this year because parts of the economy and markets are stabilizing, Reuters reported, citing an interview.
“We are now at the point where we can begin to wind down the programs that really defined TARP in its initial stages,” Reuters quoted Geithner as saying in the interview today, referring to the Troubled Asset Relief Program.
The Fed will issue its Beige Book report on regional economies today, which policy makers will use to gauge the state of the housing market and the overall economy when they meet in the first week of November.
Deutsche Bank
Deutsche Bank helped lead European shares lower, sliding 3.8 percent to 53.25 euros. Germany’s biggest bank reported pretax third-quarter profit of 1.3 billion euros ($1.94 billion). That was less than the 1.53 billion euros forecast by Matthew Clark, a London-based analyst at Keefe Bruyette & Woods Ltd. The number matched forecasts from Morgan Stanley and Bernstein Research while the median estimate of 10 analysts was 1.19 billion euros.
JPMorgan last week reported its highest profit since the subprime mortgage market collapsed while earnings at Goldman Sachs Group Inc. surged. That raised expectations for Deutsche Bank, which sidestepped the worst of the financial crisis without government aid, analysts said.
“The headline pretax figure wasn’t a blow out,” said Clark, who has an “outperform” rating on the stock. “We need to wait before we can judge the quality.”
To contact the reporter on this story: Maud van Gaal in Amsterdam at mvangaal@bloomberg.net.
Last Updated: October 21, 2009 07:56 EDT
U.S. Stock Futures Fall as Boeing Drops;Yahoo Gains on Profit
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By Maud van Gaal
Oct. 21 (Bloomberg) -- U.S. stock futures fell after Boeing Co. posted a wider-than-estimated loss and concern grew that a seven-month rally has left equities too expensive. European stocks slid as results from PSA Peugeot Citroen and Deutsche Bank AG disappointed some investors.
Boeing Co., the world’s second-largest commercial-plane builder, slid 1.7 percent after reporting charges of $3.5 billion for delays to its 787 Dreamliner and 747-8 jumbo jets. Ford Motor Co. dropped after Peugeot, Europe’s second-biggest carmaker, posted lower sales. Yahoo! Inc., the owner of the No. 2 U.S. search engine, rose 4 percent as profit beat estimates.
“There have been positive earnings surprises but at a certain point expectations were so low, results could only beat them,” said Joost van Leenders, an Amsterdam-based strategist at Fortis Investments. “You see investors are being struck with doubt about the sustainability and strength of the recovery every now and again.”
Futures on the S&P 500 expiring in December slipped 0.6 percent to 1,083 at 7:54 a.m. in New York after earlier gaining as much as 0.2 percent. Dow Jones Industrial Average futures lost 0.6 percent to 9,945 and Nasdaq-100 Index futures slid 0.5 percent to 1,749. Europe’s Dow Jones Stoxx 600 Index retreated 0.9 percent.
The S&P 500 has rallied 61 percent from a 12-year low in March as the Federal Reserve lent, spent or guaranteed $11.6 trillion to combat the worst U.S. recession since the 1930s. The rebound left it trading at about 20.5 times the reported earnings of its companies, the highest level since 2004.
Earnings Season
Profit has topped estimates at 79 percent of the S&P 500 companies that have posted third-quarter results, including Google Inc., JPMorgan Chase & Co. and DuPont Co. More than 130 S&P 500 companies are reporting this week, with Morgan Stanley and Wells Fargo & Co. set to announce today.
Boeing slipped 1.7 percent to $50.99. The net loss was $1.56 billion, or $2.23 a share, bigger than the $2.10-a-share average estimate of 18 analysts in a survey. Sales rose 9.1 percent to $16.7 billion from the year-earlier quarter, which was hurt by a strike, and compared with an estimate of $17.2 billion.
Eli Lilly & Co. rose 1.6 percent to $35.80 in New York after posting earnings that beat analysts’ projections as sales of its depression drug Cymbalta and lung- cancer treatment Alimta increased.
Ford, the only major U.S. carmaker to avoid bankruptcy, slid 0.5 percent to $7.67 in Germany after Peugeot said third- quarter revenue fell 7.7 percent. Peugeot tumbled 6.3 percent to 22.65 euros in Paris.
Yahoo rose 4 percent to $17.85. Third-quarter profit excluding some expenses was 15 cents a share, beating the average prediction of 13 cents by analysts in a Bloomberg survey. Sales, excluding fees passed on to partner sites, were $1.13 billion, exceeding projections.
SanDisk, Geithner
SanDisk Corp. soared 8.1 percent to $23.21 in New York. The biggest maker of flash-memory cards used in digital cameras and mobile phones forecast fourth-quarter sales that beat analysts’ estimates as chip prices rebounded.
Treasury Secretary Timothy Geithner said the bank capital- purchase program in the $700 billion bailout will be allowed to expire later this year because parts of the economy and markets are stabilizing, Reuters reported, citing an interview.
“We are now at the point where we can begin to wind down the programs that really defined TARP in its initial stages,” Reuters quoted Geithner as saying in the interview today, referring to the Troubled Asset Relief Program.
The Fed will issue its Beige Book report on regional economies today, which policy makers will use to gauge the state of the housing market and the overall economy when they meet in the first week of November.
Deutsche Bank
Deutsche Bank helped lead European shares lower, sliding 3.8 percent to 53.25 euros. Germany’s biggest bank reported pretax third-quarter profit of 1.3 billion euros ($1.94 billion). That was less than the 1.53 billion euros forecast by Matthew Clark, a London-based analyst at Keefe Bruyette & Woods Ltd. The number matched forecasts from Morgan Stanley and Bernstein Research while the median estimate of 10 analysts was 1.19 billion euros.
JPMorgan last week reported its highest profit since the subprime mortgage market collapsed while earnings at Goldman Sachs Group Inc. surged. That raised expectations for Deutsche Bank, which sidestepped the worst of the financial crisis without government aid, analysts said.
“The headline pretax figure wasn’t a blow out,” said Clark, who has an “outperform” rating on the stock. “We need to wait before we can judge the quality.”
To contact the reporter on this story: Maud van Gaal in Amsterdam at mvangaal@bloomberg.net.
Last Updated: October 21, 2009 07:56 EDT
Morgan Stanley Profit Beats Estimates on Investment Banking
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By Christine Harper
Oct. 21 (Bloomberg) -- Morgan Stanley, the sixth-largest U.S. bank by assets, reported its first profit in a year, surpassing analysts’ estimates on higher investment-banking fees.
Third-quarter earnings fell to $757 million, or 38 cents per share, from $7.7 billion, or $6.97, a year earlier, the New York-based company said today in a statement. The average estimate of 21 analysts surveyed by Bloomberg was for earnings per share of 30 cents, with predictions ranging from 11 cents to 56 cents.
Chairman and Chief Executive Officer John Mack, who plans to hand off his CEO duties to Co-President James Gorman at the end of the year, has expanded the company’s retail brokerage unit and hired traders to help recover from the worst losses in the firm’s history. The stock, which has more than doubled this year, is still below where it traded in September 2008 before Lehman Brothers Holdings Inc. went bankrupt.
“There will be a general sigh of relief,” said Douglas Ciocca, a managing director at Renaissance Financial Corp. in Leawood, Kansas, which manages $1.9 billion and doesn’t own Morgan Stanley. “Building their foundation on a firmer footing is taking a little bit more time” than for Goldman Sachs Group Inc., Ciocca said.
Morgan Stanley, which had reported per-share losses for three straight quarters before today, gained 103 percent in New York Stock Exchange composite trading this year through yesterday, when it closed at $32.52.
Goldman’s Profit
Goldman Sachs, Morgan Stanley’s larger rival, last week said third-quarter profit more than tripled to $3.19 billion, or $5.25 per share, on trading gains and investments with the firm’s own money. JPMorgan Chase & Co., the second-biggest U.S. bank by assets, reported a surge in profit to $3.59 billion, or 82 cents a share, that was driven by gains at the investment bank.
Bank of America Corp., the biggest U.S. lender, said last week that it lost $1 billion in the quarter, while Citigroup Inc., the No. 3 bank, eked out a $101 million profit.
“Bread-and-butter banking is still kind of unclear, but capital markets seems to be relatively strong,” said Kenneth Crawford, a senior portfolio manager at Argent Capital Management LLC in St. Louis, which oversees about $800 million and doesn’t own Morgan Stanley stock.
Morgan Stanley is the top adviser on mergers and acquisitions announced so far this year, the first time the firm has outmatched Goldman Sachs in that category since 2000, according to data compiled by Bloomberg.
Van Kampen
Morgan Stanley agreed this week to sell its retail investment-management business, including the Van Kampen funds acquired in 1996, to Invesco Ltd. for $1.5 billion in cash and stock, giving the bank a 9.4 percent stake in Atlanta-based Invesco.
The transaction, which is expected to close in mid-2010, will leave Morgan Stanley’s fund unit to focus on managing hedge funds, funds of funds, real estate, private equity and infrastructure funds, as well as long-only funds managed for institutional clients.
“We think this is the right move” for Morgan Stanley, Glenn Schorr, an analyst at UBS AG in New York, wrote in a note to investors. Schorr said a focus on institutional asset management and the rest of the franchise is the “best use” of management’s time.
To contact the reporter on this story: Christine Harper in New York at charper@bloomberg.net.
Last Updated: October 21, 2009 08:05 EDT
Good Morning Bro...I already got me a cup full...:)