The subprime mortgage fallout continues to affect the entire investment
community. Investment institutions like Merrill Lynch (MER | news | PowerRating | PR Charts ), Bear
Stearns (BSC | news | PowerRating | PR Charts ) and Goldman Sachs (GS | news | PowerRating | PR Charts ) are among the major
companies that have been drastically affected by the troubles facing the lending
and mortgage communities.
The Investment Brokerage industry, composed mostly of major banking
institutions, has a PowerRatings (for Industries) ranking of 2. Industries with
a PowerRating of 2
have an annualized return of 5.97% based on 3-month historical returns. By
contrast, industries with a PowerRating of 10
have an annualized
return of 35.27% based on 3-month historical returns.
Most recently, Bear Stearns experienced massive losses, stemming from
wrong-sided bets in the subprime mortgage sector. Two multi-billion dollar
hedge funds managed by Bear Stearns fell as much as 20% at the end of June,
prompting on the the primary lenders, Merrill Lynch, to consider seizing assets
in order to stem losses.
Interestingly, despite major sector weakness, individual stocks within this
industry have retained relatively positive PowerRatings (for Investors).
Here are some individual PowerRatings (for Investors) of stocks within the
Investment Brokerage industry:
|
Stock |
% Friday |
PowerRating |
| Bear Stearns |
-2.78% |
7 |
| Merrill Lynch |
-2.84% |
8 |
| Goldman Sachs |
-1.01% |
8 |
| Lehman Brothers |
-0.16% |
6 |
| Morgan Stanley |
-1.18% |
6 |
