Judah Kraushaar
Judah Kraushaar
assuming banking believe continue early excellent franchise given investment profit prove rebound scarcity shares solid stage strong value
Assuming Lehman can successfully stage a profit rebound in early 2002, we believe the shares will prove to be an excellent value at this point, and we continue to see strong franchise value given the scarcity value of solid investment banking franchises.
banks commonly deliver earnings expect gains items offset poor quality securities street trading unusual wall weak
Multinational/trust banks will probably broadly deliver on Wall Street estimates. However, we expect the quality of earnings to be poor as securities gains and other unusual items will commonly be used to offset weak trading results.
appear month revenue
Most of the company's revenue streams appear to have incrementally weakened each month in the quarter.
avoid believe cue drop explain four improved initial interest investors later light lower might point positive price prospects rates reported revenue scenario seem stage stock taking weak
To explain the initial positive stock price reaction, we point out that investors seem to be taking their cue from the prospects for lower interest rates and from the realization that Goldman Sachs was able to avoid a big reported EPS disappointment even in light of the very weak revenue environment. Four our part, we would be heartened by an overt drop in U.S. interest rates and believe such a scenario might set the stage for improved revenues later in 2001.
billion margin proceeds support surprised
We would not be surprised to see $4-5 billion in proceeds from this transaction, which may be used for buybacks or, more likely, to support acquisitions of better growth/higher margin businesses.