Break Free From Brokerages
Punk Ziegel & Co.
IN THE PAST FEW WEEKS THE RATINGS on three brokerage companies were raised from Sell to Market Perform. Two of them have fallen in price since that time, one rose.
I now believe that the upgrades were premature and I am adjusting the ratings back to Sells on all three stocks [Bear Stearns, Goldman Sachs and Lehman Brothers]. I am also adjusting the earnings estimates for each of the brokers.
[Merrill Lynch and Morgan Stanley are also rated at Sell]
My position from this point forward is to aggressively buy the bank stocks and sell the brokers.
BARRONS (yeah, I know it's a subscriber service, but believe me, it's worth it weight in gold).