DALLAS, Texas 8/21/2008 4:08:00 AM
News / Finance

Beacon Equity Issues Technical Trade Alerts on Financial Stocks: LEH, GS, MER, MS, JPM, C

Today’s Trade Alerts include: Lehman Brothers Holdings Inc. (NYSE: LEH), Goldman Sachs Group Inc. (NYSE: GS), Merrill Lynch & Co. Inc. (NYSE: MER), Morgan Stanley (NYSE: MS) and JPMorgan Chase & Co. (NYSE: JPM) and Citigroup Inc. (NYSE: C).

Lehman Brothers Holdings Inc. (LEH) shares climbed 5.13% to $13.77 Wednesday morning, recovering from yesterday’s slide after an analyst said write-downs of the bank could reach $4 billion during the third quarter due to exposure to troubled mortgage securities.  Lehman Brothers, through its subsidiaries, provides various financial services to corporations, governments and municipalities, institutions and high-net-worth individuals worldwide...

According to Ron Ianieri, chief option strategist at the Options University, Lehman Brothers is likely the next investment bank to follow Bear Stearns into collapse and that  "Lehman is definitely there" among the banks in serious trouble of failing

Lehman Brothers is, however, currently doing everything it can to keep its independent status.  News said it is also considering selling its investment management business, including the firm's crown jewel, the Neuberger & Berman asset management unit, to drum up much-needed capital and offset possibly billions in further write-downs from risky debt that went sour...”

The Goldman Sachs Group Inc. (GS) shares climbed 1.18% to $159.76 Wednesday morning.  Goldman Sachs provides a range of investment banking, securities and investment management services to corporations, financial institutions, governments and high-net-worth individuals worldwide

According to an analyst from Fox-Pitt Kelton Cochran Caronia Waller, David Trone, Goldman Sachs is particularly vulnerable to more recent downturns in global equity markets.  The analyst cut his third-quarter profit estimate for Goldman Sachs by 40% to $1.95 a share.  He further wrote that this move reflects "weaker-than-expected results across the board and bigger write-downs than projected

Goldman Sachs operates in three segments: Investment Banking, Trading and Principal Investments, and Asset Management and Securities Services.  The Investment Banking segment provides financial advisory services, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs…”

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Beacon Equity Research
Jeff Bishop, (469)-252-3505
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