Judah Kraushaar
Judah Kraushaar
avoid believe cue drop explain four improved initial interest investors later light lower might point positive price prospects rates reported revenue scenario seem stage stock taking weak
To explain the initial positive stock price reaction, we point out that investors seem to be taking their cue from the prospects for lower interest rates and from the realization that Goldman Sachs was able to avoid a big reported EPS disappointment even in light of the very weak revenue environment. Four our part, we would be heartened by an overt drop in U.S. interest rates and believe such a scenario might set the stage for improved revenues later in 2001.
assuming banking believe continue early excellent franchise given investment profit prove rebound scarcity shares solid stage strong value
Assuming Lehman can successfully stage a profit rebound in early 2002, we believe the shares will prove to be an excellent value at this point, and we continue to see strong franchise value given the scarcity value of solid investment banking franchises.
believe continue decent economy fourth mark next quarter recovery support
Indeed, we continue to believe the fourth quarter will mark the trough for revenues - a firming economy could support a decent recovery next year.