Home
 

InvestorGuide Stock Analysis

Can the Market Support Another Stock Offering for Morgan Stanley?
Excerpt from the InvestorGuide.com Stock of the Day on 6/2/2009

With all eyes focusing on the bankruptcy of the nation's largest automaker, GM, attention has primarily been shifted away from the troubled banking sector. Today, Morgan Stanley announced that it plans to raise $2.2 billion as part of plan to satisfy preconditions for repaying the TARP money it received last fall amid the credit crisis. The company's latest stock sale comes hours after JPMorgan Chase (JPM: Charts, News, Offers) and American Express (AXP: Charts, News, Offers) announced unexpected plans to sell shares. Amidst all of the stock offerings, will Morgan Stanley be able to raise the necessary capital to pay off TARP?

Morgan Stanley was among 10 of the 19 firms subjected to stress tests that were deemed to need more capital. Morgan Stanley, which last month raised $4.57 billion, was told to raise even more capital. As a result, Morgan Stanley will need to raise an additional $2.2 billion dollars. It has priced the offering at $27.44 per share, an 8.2% discount from Monday's closing price of $29.89. Based on the price, Morgan Stanley will issue about 80.2 million shares of common stock. Current shareholders China Investment Corp. and Mitsubishi UFJ Financial Group Inc. agreed to purchase 44.7 million and 16 million shares, respectively. As of the first quarter, Morgan Stanley had approximately 1.1 billion shares outstanding. As much as 5% more shares could be sold if there is sufficient investor demand, which is fewer than the usual 15% overallotment. More >


Subscribe to the Stock of the Day!
 

Add to tracker

InvestorGuide Stock of the Day RSS feed

RSS
Give Morgan Stanley Sometime to Adjust to the New World
Excerpt from the InvestorGuide.com Stock of the Day on 4/24/2009

Poor John Mack. Last year, he was criticized for overseeing the excessive leveraging of Morgan Stanley's balance sheet since his return to the firm in 2005. The storied Wall Street shop almost went the way of Lehman and Bear but Mack, with his dogged resilience, brought MS back from the precipice getting some help from his Japanese friends (Mizuho Financial) and the US taxpayer via TARP along the way. So he probably thought we came so close to being extinct that it might not be a bad idea to take it easy for a couple of quarters, cut back on proprietary trading and regain our bearings. Ordinarily, after the amount of red ink banks used up last year, this notion would have been well received. But then last week, after Goldman reported earnings and knocked the cover off the ball, MS was expected to do something similar. However, on Wednesday, the street, to its great disappointment found out that Mack is apparently on a no-risk diet. More >

Morgan Stanley Posts $2.37 Billion Loss
Excerpt from the InvestorGuide.com Stock of the Day on 12/17/2008

Yesterday, Goldman Sachs (GS: Charts, News, Offers) posted a 4Q loss of $2.12 billion. Morgan Stanley today followed suit and posted a loss of $2.37 billion as well. However, the market continued to rally on Goldman Sachs' earnings report due to the fact that Goldman Sachs reported positive earnings for the year ending 2008. We have seen how investors responded to Goldman Sachs' loss, but will investors be as receptive to the loss generated by Morgan Stanley? Also, what has Morgan Stanley been doing since turning into a bank-holding firm? More >

Is Morgan Stanley Next?
Excerpt from the InvestorGuide.com Stock of the Day on 9/18/2008

The financial landscape of Wall Street has been undergoing its most dramatic transformation since the Great Depression. Despite better-than-expected earnings, Morgan Stanley is topping the list of firms seeking shelter from the mounting financial storm. Morgan Stanley, one of the two major Wall Street banks left standing, has entered preliminary talks of a merger with Wachovia Bank (WB: Charts, News, Offers). Other banks have also expressing interest. Morgan Stanley has long been considered one of the more conservatively run investment banks but has seen its share price cut in half since the beginning of September. With Wachovia's shares down 80% from their 52-week high, one must ask whether this potential merger is fueled by fear that Morgan Stanley would follow the same path of the other fallen investment banks. Will this be end of the investment banking model for Wall Street? More >

Can Morgan Stanley Start Trading Better With its Money?   6/18/2008

Morgan Stanley takes first-ever quarterly loss in stride   12/19/2007

Morgan Stanley CEO Nets $40m Bonus   12/15/2006

Morgan Stanley Profits Double   6/21/2006

Morgan Stanley (MS) Upgrades

Date
Analyst
Old Rating
New Rating
05/18/2009
Analysts at JMP Securities
Market Underperform
Market Perform
05/11/2009
Pali Research
Neutral
Buy
05/08/2009
Bank of America
Neutral
Buy
04/23/2009
Sandler O'Neill
Sell
Hold
04/23/2009
Bank of America
Underperform
NeutralMorgan Stanley
03/11/2009
Goldman Sachs
Neutral
Buy

Morgan Stanley (MS) Downgrades

Date
Analyst
Old Rating
New Rating
08/31/2009
BofA/Merrill
Buy
Neutral
05/07/2009
Keefe, Bruyette & Woods
Outperform
Market Perform
03/17/2009
Bank of America
Buy
Underperform
09/15/2008
Citi
Buy
Hold
08/13/2008
Merrill Lynch analyst Guy Moszkowski
Buy
Neutral
02/13/2008
Oppenheimer
Outperform
Perform

Morgan Stanley (MS) New Coverage

Date
Analyst
Rating
04/02/2009
Credit Suisse
Neutral
03/30/2009
Rochdale
Hold
03/27/2009
Friedman Billings
Market Perform
03/17/2009
Oppenheimer
Outperform
11/25/2008
Sterne Agee & Leach
Buy
Get Analysis For: