More Down Low on Bonus Timing
We got a few tips from a little birdie last night who’s got an inside track on what’s happening in bonus land. Here are some take-aways:
There you have it folks. If want to share, we’re all ears at .
Double-Teaming Technology Banking at Morgan Stanley
The game of management merry-go-round continues over at Morgan Stanley. With longtime technology banking head Dhiren Shah moving over the Greenhill & Co., MS has promoted the dynamic duo of Paul Chamberlain (left) and Michael Grimes (right) to head up the group. The 41-year-old Chamberlain has been at Morgan Stanley since 1985, working on over 150 financing and merger transactions, including the sale of Macromedia to Adobe Systems and the sale of Netscape to America Online. The 38-year-old Grimes has been at Morgan Stanley for 10 years and in technology banking for 18 years, working with such clients as Google and Oracle. The two ranked 7th and 6th, respectively, on Forbes’ Midas List for 2004. Sounds like a match made in heaven.
Morgan Stanley Tech Group Names Co-Heads [Wall Street Journal]
Lehman Crushes Estimates, Stock Takes a Hit
Lehman Bros. got the investment bank reporting season off to a rollicking start this morning posting profit numbers that were 41% higher than 4Q 2004. The quarterly earnings of $823 million translated into $2.76 a share, handily beating estimates of $2.64. The big driver this quarter was investment banking revenue with a strong showing from investment management as well; principal transaction experienced a drop-off. After peaking in late November, the stock is off another $2 this morning on the news. The market must agree with blogger Crossing Wall Street who described why he’s steering clear of the stock:
So how come I don’t love the stock? It pains me to say this, but I just don’t see the stock going much higher next year. The reason is that Lehman is primarily a bond shop. The company has done a very good job of diversifying over the past few years (Neuberger Berman was a great buy), but bonds are still the heart and soul of the company. With the yield curve so flat, I’m skeptical that the earnings surprises will keep coming.
Lehman’s Net Income Surges [Wall Street Journal]
Not Much Upside Left in Credit Suisse Stock, S&P Says
Credit Suisse stock has fought it’s way back to three-year highs recently after a gruesome slaughtering at the hands of investors in late 2002 and early 2003. That’s precisely the problem, though, according to S&P which is cutting CSG stock to a hold. Despite faith in management’s ability to achieve its strategic and financial targets for 2006, the rating agency says that, “with the recent run up in price, the American Depositary Shares are fairly valued.” The 12-month price target? $53, less than a buck more than yesterday’s close.
S&P Lowers Opinion on CS [Business Week]
