These upgrades are absolutely suspect. This may sound far-fetched but this may have something to do with WAMU and the damage it could cause financial stocks when the terms are announced. Currently the street in all their delusion, is using the LEH capital raise as a proxy for how all other financial insti's will raise money and how those stocks will perform afterward. LEH got lucky because they were failing and people jumped big to make a strong illusion of their strength.
But, I still do not think that is the way it will go for WAMU. See my post below on "WAMU Closes wholesale'. I gave my thoughts there. WAMU is not getting a 'LEH type deal, the street knows it and knows WAMU's deal will be so weak it makes suspect the valuation of all financials going into earnings, where raising capital will be paramount to their very survival.
Today's suspect upgraded from LEH and Goldman below...the Pigmen are at it again. - Best, Mr Mortgage
U.S. Brokers, Asset Managers Raised to `Attractive'
at Goldman
By Joyce Moullakis and Adam Haigh
April 8 (Bloomberg) -- U.S. brokers and asset managers were raised to ``attractive'' from ``neutral'' at Goldman Sachs Group Inc., which said mortgage writedowns may ``significantly exceed'' actual losses. ``We have reached an inflection point for stocks with little credit exposure, or where exposure is marked to market,'' Goldman analysts including London-based Richard Ramsden wrote to clients today. ``Investors can benefit by distinguishing exaggerated fears from legitimate, ongoing problems.'' New York-based Goldman reiterated its ``buy'' recommendation on Lehman Brothers Holdings Inc. It rates Morgan Stanley ``conviction list buy.'' It raised Franklin Resources Inc., manager of the Franklin and Templeton mutual funds, to ``buy.'' It also upgraded Bank of New York Mellon Corp., the largest custodian of financial assets, MetLife Inc., American Express Co., and Janus Capital Group Inc. to ``buy.'' FUNNY, NEW YORK MELLON HAD MAJOR OUTFLOWS ON ANY BUYING YESTERDAY AS REPORTED BY THE WSJ.
THIS ONE IS CLASSIC...FNM & FRE upgraded to Overweight from Equal Weight@LEHM Lehman believes GSE's have reached an inflection point and upgraded FNM and FRE to Overweight from Equal Weight due to improvements in the company's abilities to deploy capital at higher returns. FNM price target of $46 is unchanged and FRE price target raised to $45 from $42
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