Zacks' 7 Best Stocks for June, 2013
FREE Report for Zacks.com
Visitors Only

They're hand-picked from the list of Zacks Rank #1 Strong Buys. Our experts predict that their prices will jump the soonest.

Today, you can see them free.

Close This Panel X

Are you a new Zacks Member or a visitor to Zacks.com?

Recent Quotes

No Recent Quote currently available

My Portfolio

My Portfolio Tracker

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts. Set yours up today.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Stocks on the Move 05/21/2013

Company Name Symbol %Change
SCIENTIFIC L SCIL
8.00%
NATUS MEDICA BABY
6.11%
SUMMER INFAN SUMR
6.02%
RADIANT LOGI RLGT
5.32%
NEW ORIENTAL EDU
4.51%

MS to Vend Commodity Biz?

by Zacks Equity Research

October 04, 2012 | Comments : 0 Recommended this article: (0)
MS C GS

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Morgan Stanley ( MS - Analyst Report ) is said to be discussing the sale of a large stake of its commodities business to Qatar Investment Authority, according to a report in the Financial Times.

Discussions have been going on for months for vending of a smaller stake in the commodities business of Morgan Stanley, which boasts of its specialization in trading of oil, gas and electricity. However, currently talks have proceeded to a majority stake.

According to the report, with the vending of the commodity unit, traders would be able to carry on trading for their own books but this would be banned for banks as per the impending Volcker rule under the U.S. regulations. Hence, this deal for which selling price has not yet been finalized, would help Morgan Stanley to abide by regulations.

As a matter of fact, Morgan Stanley is in the process of overhauling its business. It is augmenting its retail brokerage and wealth management business and increasing its stake in the Morgan Stanley Smith Barney joint venture with Citigroup Inc. ( C - Analyst Report ) . Morgan Stanley will eventually buy out the entire joint venture by June 2015. The expansion in retail brokerage and wealth management business is aimed at achieving revenue and earnings stability.

Notably, Morgan Stanley and Goldman Sachs Group Inc. ( GS - Analyst Report ) were the top commodity trading firms in the pre-financial crisis period. However, revenues have been trending lower in the past few years with investors shying from the business owing to the concerns over the financial crisis, worldwide.

However, we believe that the restructuring initiatives as well as organic and inorganic growth strategies will continue to be significant growth drivers going forward for Morgan Stanley. Yet, concerns related to the possibility of the company’s financials being adversely impacted by new capital requirements, elevated costs and intense pricing competition remain headwinds.

Morgan Stanley currently retains its Zacks #3 Rank, which translates into a short-term Hold rating.

Email Print Share Rate Pos Rate Neg

Read/Post Comments (0) | Recommended this article (0)

Please login to Zacks.com or register to post a comment.

Zacks Research is Reported On:

Zacks Investment Research

is an A+ Rated BBB

Accredited Business.