Legg Mason, Inc. (LM)
The Company and its subsidiaries are principally engaged in providing asset management and related financial services to individuals, institutions, corporations and municipalities.
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With 2 of the 3 worst performing non-leveraged US stock funds in 2008, more redemptions will eat into the company in 2009.
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Looking purely at the SlowStochastics on LM's chart, it appears this stock is currently ready for another slip down the rabbit hole. Irs financials aren't so bad, but it's in a beaten-up industry which still has some more pain to go through. I think we could see LM sink to $12/share, or perhaps more. I'll ride it down to at least that far, then I'm out of my Thumbs-Down position.
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general market decline. reversing calls on some losers till we have some sort of recovery.
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If the Fool philosophy is to buy companies you would like to own forever then LM flunks hands down. I didn't buy on the MDP recommendation because I can't market time, if you can, then by all means ride the wave.
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They own too much common/preferred Freddie/Fannie. This dictates that they must underperform their peers if not the entire S&P. Unless one believes in miracles this portion of their portfolios is toast. I mean, I am an optimist but also a realist. Dump it before the world finds out the extent of their toxic exposure, please!
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All of the "expert fools" have been a pimp for LM, posting numerous articles pumping it up. It also is an inside value pick, Motley Fool's sorely underperforming paid service. "It just can't possibly go wrong!" We shall see.
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dead as a duck.
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The fund manager Bil Miller is very bullish on all the wrong stocks-top holdings as of 31-3-2008 include Merrill Lynch,COF,FNM,JPM,UNH,Sears.The bond investments are also souring.
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Maybe Lame Mason as they have lost focus. They seem to be running scared and not focusing on the business - performance with a limited number of quality funds. They've played with Citigroup's transferred businesses and are over their heads. They should limit the number of funds, keep quality management and get to work. They've screwed up money market funds - who else could have done that!!!
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negative revenue growth

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