Tag Archives: Morgan Stanley

Why Wall Street MUST Engage In Serious Social Media Efforts

Latest since the financial crisis, Wall Street organizations have a difficult stand with the public. The image is bad and this is probably an understatement. Over the past few years hardly any organization or leader of a Wall Street organization has made an effort to improve the public opinion. The opposite is the case. Just recently JP Morgan Chase, Morgan Stanley and Goldman Sachs provided the public again with bad ammunition against their brands and public images. The constant inactivity in brand maintenance is now starting to hurt the bottom lines.  It can now be watched how some minor efforts have started taking place.

In the past those brands believed that their brands have nothing to do with the public, since only a few are catering their services to people on the street. Morgan Stanley and Goldman Sachs don’t cater to the average Joe on the street and if, only in an indirect way. This assumption is as wrong as it gets. It took a while until this came to the surface, but since Facebook’s almost scandalous IPO even the last on Wall Street should have gotten the message. For those that haven’t understood why they have direct contact with the public and why this can hurt future business, here is the short and easy explanation: Continue reading

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Facebook, Zuckerberg, Morgan Stanley Sued Over IPO

Facebook’s unfortunate IPO – Wall Street in the middle of it, again.

Three days into trading as a public company it is time to take a look at one of the most anticipated IPO’s the world has ever seen. To summarize it right at the beginning, it was and is a huge mess and it is not very short of an embarrassment for those involved.

Let’s not waste to much time on the technical issues, even though it is fair to say that NASDAQ didn’t convince the world with their performance. However, that doesn’t increase the value of Facebook and its current capabilities. While over the past weeks and before the IPO there was a huge hype about Facebook, besides of the fact that they went public there is really not much to be enthusiastic about. That counts for the short and mid term. What happens in the long term, 2 to 5 years, nobody knows. As it turned out, this wasn’t unknown by the underwriters of the IPO, Morgan Stanley, JP Morgan Chase and Goldman, who had information about downward revenue correction for the rest of the year. That the information wasn’t published during the entire hype has the easy reason that they all wanted to make their money.  This seems not to be a problem with the current regulations, but this is an entire different problem.

Sure the circulating number of 900 million users is enormous, but honestly, I don’t buy into that. In my opinion that is in no way the number of single active users. I just don’t believe it.  I believe that this number includes double and triple profiles and a huge number of inactive users. I would even go so far and claim that at least two thirds of that huge user number is absolutely useless for Facebook’s business model. In other words, the majority of users is not at all interested in advertising on the platform or has no technical ability to see the ads. Continue reading

Why should Apple pay Dividends?

After this week’s Apple event, the writers in the finance world are busy to tell us why Apple should pay a dividend to its shareholders. The reasons brought up range from greed to theories from 1871 and worse. Fact is, Apple is not paying such dividend, and rightly so. Continue reading

Apple is selling the “dingens” out of it…

Goldman Sachs and Morgan Stanley

Somehow this earnings season is something special. Not sure what it is. Sitting here and waiting for the reports feels a little like sitting and waiting until “the game” starts. Maybe it is because I am sitting and hoping the numbers are all good and we all can now look ahead at better times to come. Well, turns out, not so. Some of the important players have reported not as strong as expected, or only reported numbers that would have been called ridiculous a few years back, or both.

I find it especially interesting what Goldman and Morgan Stanley had to report and as a guideline, at least so I thought, JP Morgan. ​Well, while JP Morgan reported some nice numbers and created some hope, the following reporting “big guns” in finance display a struggle. It seems the golden years are really over​. Yes, the mortgage bubble blew up, not in their face it appeared, but now it seems they have a few issues to carry. One of the questions I ask myself, what are they doing now? And I remember​, 10 years back, when the “internet bubble” busted, I asked myself the same question. Then they lost the business of IPO’s. Remember, every website was brought public and nice fees bolstered revenue and profit. Today, the mortgages are gone and with them all the attached opportunities to make a lot of money. Sounds a little like then, doesn’t it? 
So, I am wondering, are they out of ideas? No business model other than trading around for a few bucks? I am afraid so, at least for Goldman. Morgan Stanley didn’t look much better, however, it is said that they are in better shape for the future due to a few adjustments they made (Dean Witter/Smith Barney businesses) and others. This is interesting, there is a bet on the retail investor. Also, JP Morgan has a retail bank attached and that surely helped to create some revenue and profits. I don’t read retail in any of the Goldman news. I am in deed under the impression Goldman is falling behind.
So, I am already looking forward to the next earnings season like I start waiting for the super bowl in September. ​How will they do in the next three months? Will the recent plannings and executions at Morgan Stanley ​help them report better numbers? What will Goldman do? I was thinking for myself, last time they created the mortgage bubble when things were sour, what will it be this time? Watch out, regulations or not, I am afraid something is brewing. ​