Merrill Lynch downgraded Citigroup Inc., Lehman Brothers Holdings, and Bear Stearns Cos. to neutral from buy. The broker said Bear Stearns and Lehman have a greater dependence on the debt markets than other firms and earnings are therefore likely to suffer from a slowdown in securitization and mortgage business. Merrill cut its 2008 earnings forecast for Lehman by 22% to $6.80 a share and for Bear Stearns by 16% to $12.07 a share. Merrill cut its earnings estimate for Citigroup by 5% to $4.91 a share, saying the group's broader business mix meant the earnings shortfall should be less dramatic than at Bear Stearns and Lehman. "But given the risks, we feel the need to be more selective," Merrill said. Merrill added its top picks in the sector are Goldman Sachs and Morgan Stanley because of their business mix and geographical diversity. http://www.marketwatch.com/news/sto...1B-8508-426A-8A09-74B91FE73291}&dist=hplatest Yesterday GS downgrading sector, today Merrill...seems the GUYZ want to load up...Funny enough one of GS` and MERRILL´s top picks is Morgan Stanley...anyway, expect bottom in these stocks coming soon...
I never expected to see these guys cannilbalizing eash other, but the thing is, Merrill's right. Let's just hope they don't put out a "buy" on these same stocks three days later like they did with CFC.
that's funny - especially given that senior guys did recently the most insider buying ever - the analyst must have balls or be completely stupid.
They get the bad news out, make a floor on the stock, and get it up from here. Now I am wondering who will downgrade Merrill?
Maybe to WEST LB and this DUMB*** CEO genius Alexander Stuhlmann telling eagerly swamping journalists "on the sidelines of a bank event" that "We sense reluctance on the part of foreign partners to extend credit to German banks."