Excerpt from Newsletter: Stock Recommendation: MS (Morgan Stanley)

Posted by ttfrenzy | 12:18 PM | , , , | 0 comments »

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Morgan Stanley RecMorgan Stanley is perhaps the best stock to buy at this time of economic turmoil.  The financial industry has gotten a huge boost from bailout that they will be getting, and by late November creditors will have cash in hand, boosting everyone's confidence in the economy alike.  What sector will benefit the most from this.  Well the financial sector: It is the most undervalued sector and will likely get the most out of increasing investor confidence.  You may note that the financial sector has suffered recently over the myriad of crises and bankrupcies that have recently occured and thats why only the most solid financial companies, the likes of Morgan Stanley and Goldman Sachs can be trusted.  
             Techmically speaking, Morgan Stanley is very solid as well.  It's forward p/e i just 9.9 so it is clear that the company is incredibly over sold and undervalued.  Also MS is 77 percent institutionally owned again reflecting on its solidity and reliability, and has a pretty solid dividend.  The company is well above its 52 week low which it hit just days ago and will likely continue to go up reaching prices that are not quite as far below what one would expect.   If you take a look at the chart attached, it shows the Ichimoku clouds for the stock.  They have just recently gone into green territory indicating a time to buy.  Also the MACD has now changed from a negative trend to a positive trend and gone above zero also a good signal of a stock's momentum.  The high volume buying that occured just days ago manifests that the recent jump from 10 dollars a share to 20 dollars a share is not just a temporary move but something that should be regarded. Both fudamentally and sector wise, Morgan Stanley seems to be an excellent buy at the moment, that every investor should take advantage of. Morgan Stanley is undervalued and is a solid company in the financial sector, one that will likely see substantial gains within the near future.

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