Morgan Stanley (NYSE:MS)

good buy at current prices and lots of room for growth

Seemingly low valuation is a mirage. Profits are going to be way down for some time, until the next nifty finnancial debacle comes along. Goodbye junk bonds, savings and loans, and CDOs... hello, um, we don't know what. Hence, cruising for a further bruising short term. May get in when it hits $30.

Morgan Stanley is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to customers, including corporations, governments, financial institutions and individuals. It operates in four business segments: Institutional Securities, Global Wealth Management Group, Asset Management and Discover. On December 21, 2006, Morgan Stanley acquired CityMortgage Bank, a mortgage bank that specializes in originating, servicing and securitizing residential mortgage loans in the Russian Federation. On December 4, 2006, it acquired Saxon Capital, Inc., and FrontPoint Partners LLC, a provider of absolute return investment strategies. In April 2007, Morgan Stanley & Co., Incorporated and Morgan Stanley DW Inc. were merged into a single broker-dealer under the name Morgan Stanley & Co., Incorporated. In July 2007, Morgan Stanley's Morgan Stanley Real Estate acquired eight European Hilton hotels. In December 2007, it acquired Tops Markets, LLC.

Believe the market has over reacted to the sub prime problems and left solid firms at discounted prices such as Morgan Stanley, Bank of America, Wachovia and IXG Ishares Global Banking ETF which gives you instant diversification for those of you who want general exposure to the banking sector all classed as long term 'Buys'.

Be cautious of 4th quarter sub prime write offs, these could hurt some of the larger banks and leave short term prospects unattractive, however for the longer term investor this could further add value to you now even cheaper buys.

We can look at where people's love/hate relationship with stock-price movements have knocked their prices far away from what the underlying businesses are really worth. And the farther away they're knocked, the better your chances to profit -- in the real world, with real money -- when things return to normal.

Market has over reacted to recent bad news for this solid player. This should bounce back over the next year to more respectable P/E levels.

this is definitely a long term value play

value play

All of the financials are discounted. MS is one of the best and is a bargain at these prices. Bottom will be found soon and stock will be taken off the discount rack back at fair value at least between 70-80.

What can I say. By far best company in the financial services industry. Fantastic management and name recognition. Most assets in wealth management in world. Best performing investment banks by number of deals last year. So on and so on. BIG BUY for me right now. will rebound big time.

Has 3 divisions:
- Institutional Securities: Includes capital raising, financial advisory services, corporate lending, sales, trading, financing and market-making activities in equity securities, fixed income securities and related products, benchmark indices and risk management analytics, research and investment activities.
- Global Wealth Management: Provides brokerage and investment advisory services, financial and wealth planning services, annuity and other insurance products, credit and other lending products, banking and cash management services, retirement services and trust and fiduciary services.
- Asset Management: Provides global asset management products and services in equity, fixed income and alternative investments to institutional and retail clients through proprietary and third party retail distribution channels, intermediaries and its institutional distribution channels.

Trouble with loans.

This one is way undervalued. I'm seeing a quick 20 to 30 point up-swing within a year.

The banking industry is being hit hard. Morgan Stanley has a great management team and will weather the storm. The old saying find a fundamentaly strong stock at a low price and buy. that where we are with Mogan Stanley.

With a rate cut likely, the investment banks and brokers should perform well. MS has been beat down lately, and 62 or lower would probably be a good time to start a position. When the fed cuts, sell into that strength.

Mentioned in Volume 28, Number 17 - September 1, 2007

Not directly affected by what's really causing the financial market panic. It'll rebound to June/July levels.

MS has been a major player in the booming commodities market, and is now now getting deep into proprietary trading. Mack has quickly instilled a culture of profitibility.

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%

Morningstar: "4 Stocks that should return at least 15%"
http://news.morningstar.com/articlenet/article.aspx?id=202979&pgid=rss

subprim mess hurting ms