MS sells at a price-to-book of about 0.5, which makes MS seems cheap. On the other hand, MS is not making much of a profit these days, and one must wonder if the assets are valued accurately. Seems to me, MS is due for a drop back to about $14, especially when the USA goes over The Fiscal Cliff.
What do you think? MS overpriced or half-price?
Yaaawwwhhhnnnn. another CNBC sheepie. keep dreaming about 2008, in the mean time, you should read what jacksplace103 has written and factor in the improving economy. but let me guess, the economy in the bubble world you live in is not improving right?
MS is in a trading range, 15-18, and will not break out of that, I firmly believe. Mostly likely MS has been trying to be something that they are not. They brought Facebook public at $32-34? What brainiac did that, only to watch the stock plunge to current levels.
MS should focus themselves on private money management, not IPO's. Attract money and you will always be better off than trading it.
They were not making much of a profit due to the costly acquisition of smith Barney and the conversion of millions of Smith Barney accounts to the Morgan Stanley platform. This was a substantial drag on earnings over the last few years. The conversion of data was recently completed and operating costs are set to drop substantially over coming quarters. This will drive up earnings per share and valuation. Morgan Stanley also generates more than half it's revenue from wealth management and as the equity markets rise revenues and margins improve. MS is a strong buy at current levels.