Brad Hintz Is Worried About Morgan Stanely’s Ability To Get Back To Number One On Clients’ Speed DialBy Bess Levin
Morgan Stanley, which last year missed an internal trading-revenue target by more than 40 percent, is under pressure to show improvement after a two-year effort to turn around the firm’s fixed-income trading business…Chief Executive Officer James Gorman, 53, is looking to prove to investors this week when results are reported that the firm is advancing toward his goal of boosting market share in fixed-income trading by 2 percentage points. With the stock down 69 percent since 2006 to $21.09 last week, Colm Kelleher and Ken deRegt, both 20-year veterans of the company, aim to succeed at a task that has taken down three senior executives. “I’m absolutely surprised at how slow it has been,” said Brad Hintz, an analyst at Sanford C. Bernstein & Co. who has a “buy” rating on the firm’s shares and is a former Morgan Stanley treasurer. “I’d love to tell you what the trajectory is going to be, but I don’t know how rapidly one can come back…The problem is that clients have long memories. “If you’re no longer the first button on a phone, it takes a long time to become the first button.” [Bloomberg]
Brad Hintz, for instance, is so pumped he might very well throw his back out.
Bank of America Merrill Lynch said it upgraded its rating on Goldman Sachs to “buy” in a note to clients following the agreement yesterday. The settlement is “palatable” and the “probability of further action against Goldman Sachs” is much lower, said analysts led by New York-based Guy Moszkowski in the note. “I’m jumping up and down and telling my dad to buy it,” Brad Hintz said of Goldman Sachs’s stock.
“Shenanigans, Bob. Shenanigans.”
Sanford Berstein analyst Brad Hintz dismissed the idea of Lehman management taking the firm private today, noting that it would be way too costly. “We are skeptical that this is the path that Lehman Brothers would choose to pursue,” Hintz wrote, unless some sort of $2 a share situation could be worked out, he wink-winked. Journal reporter David Reilly also joined the Lehman Can’t Go Private Pile-On this morning, adding that shareholders shouldn’t hold their breath about a rescue from a bigger bank, though, fishily, Jamie Dimon has been letting it slip to family and friends he likes the sound of Bearpont Brothers.
Lehman management buyout unlikely [Reuters]