Posts for Ticker ‘Bear Stearns’

Cramer Back On The Goldman Sachs Wagon (GS, BSC)

On tonight’s MAD MONEY on CNBC, Jim Cramer wanted to review how all brokerage firms aren’t cut from the same cloth.  The broker to own is the one Cramer always touts as the best, and that is Goldman Sachs (NYSE:GS).  After this last quarter reports from brokers this week from the brokerage firms, he thinks it is quite clear that Goldman Sachs is the winner.

With a 50/50 rate cut Cramer thinks it is time for brokers and time for Goldman Sachs with $6.13 versus $4.35 estimates.  They even were short mortgages and made money.  Cramer still thinks this is worth $300.00 this time next year and is the best one to own.

As far as Goldman Sachs here are some other pertinent tid-bits to contemplate:
They were a TOP PICK FOR 2007 by Cramer
Even with an "Alpha Fund" hit in the news, they won
The bets were on them ahead of the report
The stocks acted weird, but the report was better than Bear Stearns (NYSE:BSC)
Who else can call $135/barrel in oil and get away with it in a "Super-Spike" possibility?

Jon C. Ogg
September 20, 2007

Posted on: September 20, 2007 – 5:19 pm in Brokerage Firms, Cramer, , , , ,

Lehman Defying Financial Market Malaise (LEH, GS, BSC, MS)

Lehman Brothers Holdings Inc. (NYSE: LEH) has just reported net income of $887 million, or $1.54 per common share (diluted), for the third quarter ended August 31, 2007.  This does represent a drop of 3% and 2%, respectively, from net income of $916 million, or $1.57 per common share (diluted). First Call had estimates at $1.47 on EPS.

Net revenues (less interest expense) for the third quarter of fiscal 2007 were $4.3 billion, an increase of 3% from $4.2 billion reported in the third quarter of fiscal 2006 and a decrease of 22% from the record $5.5 billion reported in the second quarter of fiscal 2007.  First Call was also $4.3 Billion in estimates.

Chairman and Chief Executive Officer Richard S. Fuld, Jr.: "Despite challenging conditions in the markets, our results once again demonstrate the diversity and financial strength of the Lehman Brothers franchise, as well as our ability to perform across cycles. For the quarter, we reported record net revenues in Investment Management, and our second highest net revenues in both Investment Banking and Equities Capital Markets. In addition, more than half of our net revenues for the quarter came from outside the U.S. We remain focused on delivering significant long term value for our clients and shareholders."

Lehman is warning of substantial valuation reductions in certain portfolios and lower performing assets.  Hedges appear to have offset some of the negatives.  Equity, asset management, cash & derivatives, and investment banking were all bright spots.

Shares are now up 4% pre-market at $61.10, and th 52-week trading range is $49.06 to $86.18.  If the brokers can all somehow manage to do this well considering the environment then there are going to be some relief buyers even more than this pop.  Others reporting this week are Goldman Sachs (NYSE:GS), Bear Stearns (NYSE:BSC), and Morgan Stanley (NYSE:MS).

Jon C. Ogg
September 18, 2007

Posted on: September 18, 2007 – 7:16 am in Brokerage Firms, , , , , , , ,