Sell Rating on Brokers

Note: This was written Sunday, and scheduled to post later this week — but given the Lehman news, its more timely this AM:

We have been discussing some of the issues surrounding the brokers. We have had an "AVOID" on the sector for the past 2 years (due to balance sheet concerns), and we reiterated a sell on Lehman Brothers (LEH) last week for due to Technical factors. (My pal Charlie Gasparino disagrees with me on this).

Research from Portales reveals the some of the details regarding exposure to further write-downs.


click for larger table


Source: Portales


I do not have high expectations for sector earnings in Q2’08, with more write-downs of RMBS, weak underwriting activity, and questionable trading returns.


Dirty Tricks at Lehman? (June 2008)

Lehman Set To Raise $5 Billion Amid Losses (WSJ)

Lehman Sheds at Least $120 Billion of Assets to End Bear Stigma (Bloomberg) 

Where Will U.S. Banks Beg Next? (WSJ)

Category: Corporate Management, Credit, Derivatives, Earnings, Valuation

Lehman posts Jumbo $3B Loss; To Raise $6B

Category: Corporate Management, Earnings, M&A, Valuation

Pete Peterson on Charlie Rose

Category: Economy, Taxes and Policy


Category: Wages & Income

On Speculators

Category: Commodities, Markets, Trading

A Perfect Recession Indicator

Category: Economy, Employment

Follow Analysts at Your Own Financial Risk

Category: Earnings, Trading, Valuation

Barron’s Asks: Bear Market Rally?

Category: Index/ETFs, Technical Analysis, Trading

More on May 2008 Employment

Category: Data Analysis, Economy, Employment

Bronfman on Internet, Apple & Music

Interesting chat:


Category: Music, Video, Web/Tech