Morgan Stanley (MS)
Book Value: $31.78
Morgan Stanley has bounced back from lows in June and July, but remains well below the all-important technical 200-day moving average near $16. Morgan Stanley has more or less treaded water during the last 12 months without gaining or losing much (with more than one move higher and lower in between).With an average analyst target price of $20.35, Morgan Stanley appears to have a lot of upside relative to the other banks. The price-to-earnings ratio reflects relative higher optimism in Morgan too. Morgan is expected to bring home about 90 cents in earnings this year making the earnings multiple slightly higher than 16. Part of the higher premium may come from the higher dividend yield Morgan offers. This stock currently has an annualized dividend of 20 cents, yielding 1.37%. Short interest is 1.5%, indicating a near zero level of interest from short sellers. I would prefer to sell a November expiration covered call, but October is as close as we can get. The October $15 strike calls can be sold for about 80 cents. With a current stock price of $14.90, the maximum possible return is 90 cents for a gain of 12% in less than two months. The maximum risk is $14.10 per share. Dividend payments may positively impact the results.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV