Morgan Stanley's shares have now declined 10% year-to-date, after dropping 44% during 2011.
The shares trade for just 0.4 times their reported June 30 tangible book value of $31.02, and for less than seven times the consensus 2013 EPS estimate of $1.96. The consensus 2012 EPS estimate is 90 cents.
Morgan Stanley reported sovereign and non-sovereign net exposure to "Euro Peripherals," including Greece, Ireland, Italy, Spain, and Portugal, of $4.2 billion as of June 30, with another $1.4 billion in exposure to France. Investors could be looking at a recovery play, based on the company's very low multiple to book value, and the hope that two days of strong and vague words from European leaders will be followed by quick, concrete action.
Atlantic Equities analyst Richard Staite said on July 20, after Morgan Stanley announced its disappointing
second-quarter results, that "Morgan Stanley is planning to cut risk weighted assets within its
Interested in more on Morgan Stanley? See TheStreet Ratings' report card for this stock.
Email. Follow @PhilipvanDoorn
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV