Morgan Stanley (MS)

Kudos to Morgan Stanley for having the balls to send a thank you note to the government with their $10 billion TARP money!
We wonder if the note said:
1. Keep up those education cuts so the people picking up the bailout tab will never be able to read Section 4.9 of the CPP Securities Purchase Agreement
2. Thanks for shortchanging those taxpayers so our overworked and underpaid bank execs and their ball busting Lobbyists can pocket a few million
3. We wish to thank your appraisers for agreeing with our appraisers who independently low balled you.

Never fear Joe Average still holds GM warrants!

Regan vs. Obama

1980 when Chrysler wanted to get out of warrants owed to taxpayers for their bailout
Mr. Reagan told them to go to hell.
2009 when _________(you fill in the blank as the list will grow hourly) wanted to get out of warrants owed to taxpayers for their bailout
Mr. Obama told taxpayers the government is not in the business of making and saving you money were in the business of taking money from you!

Cheers Delta hedge season is over for you.

I have to believe that the selling today is capitulation and not based on fundamentals. It seems like it was yesterday that MS announced actual EARNINGS, PROFITS. These guys MADE MONEY last quarter... MS also has a strong balance sheet and ample liquidity, and proven management. I would put 1/3 of a position on right here, right now (I would consider putting a more aggressive 1/2 position down, but the insane volatility in the market dictates caution... a real worry that they COULD go even LOWER...) Great entry point for a long-term, blue chip brokerage that will also sport a dividend in the area of 5% - 6%... Incredible!

At least you can still short in CAPS!!!

You're being setup as of 4/13/2009. Banks are due to fall right after GS dumps it's shares and the "stress test" is proven to be fake.

I short MS whenever it gets near $17

Yesterday MS CDS debt protection costs were on ceiling. It takes 2400 basis points upfront payment and 500 basis point yearly fee to insure MS paper where as it takes only 200 basis points one time payment for All State ( for comparison)

MS as research head at Louis capital put it is beyond MS control.

Feds indicated that they will act if Mitsubishi does not step in. Why would Mitsubishi step into a deal that will chop 80% of the investment within seconds!!!

Shot this like Mad on Monday.. RIP MS

Big traditional brokerage houses like MS are "our fathers' brokers". The average investor is getting younger and more savy and willing to do things themselves with the internet and Motley Fool!

Price has jumped to high and too quick without the underlying fundamentals to support it.

Calling for $10 again in the next 3-6 months.

Level 3 Assets need to be marked to market. Until this happens I will stay on the short side.

morgan stanley is a solid investment bank with an excellent operation in the technology sector. its technology division is based in the heart of silicon valley right next door to the likes of Google, etc.

More people will be making investments with retirement funds & other investments to try to take advantage of opportunity for better returns. Financial companies are performing well for me.

They are probably the 2nd. best bank to Investment Bank to Goldman Sachs. They as well as GS are gaining clients with the collapse of Bear and the poor performance of UBS and Lehman. I think MS also has the least amount of exposure to CDO's and credit risk. I feel MS will be one of the least affected by any blows to the Investment Banks stocks.

No thanks

This company will do very well once the bank M and A take off and the bazooka from Hank Pausen's pants is released by congress upon the world. Actually I think the bailout will not cost the taxpayers much, cheap enough to avoid a depression. It is chump change next to a depression which would cost 11 trillion minimal.

Congress annoys. Harry Reid makes me puke. How did he ever get elected in Nevada? Aren't we smarter than that?

This sector is beaten down so badly it has to go up.

Caught it on a dip. It will continue to outperform. MS cleaned up its balance sheet and is not particualrly "toxic" and thus should recover more quickly than other financials.

What the Market Is Missing: In Lentell's view, Morgan has been pulled down, along with many of the big financial companies, over fears in the real estate and credit markets. Investors apparently fear the dislocation in the credit markets will lead to problems at the major investment banks. In Lentell's opinion, while the recent downturn could affect Morgan earnings in the short run, the company is well capitalized. Further, Lentell believes that Morgan's renewed focus under Mack's leadership should help the company prosper in the long run.

--Moat: Wide
--Risk: Avg
--Price/Fair Value Ratio: 0.76
--Three-Year Expected Annual Return: 24.4%

MS has an illiquid balance sheet and a too high valuation compared to its sales potential. Its profitability is decreasing. It distributes an unsustainable dividend.