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    5 replies to "Sell Morgan Stanley Before It Sells You Down the River"

    • […] There are many ways that com­pa­nies can manip­u­late account­ing rules to over­state their earn­ings, but there is only one place to find out how they do it: the finan­cial foot­notes. Nowhere on Mor­gan Stanley’s income state­ment do you see that they included $821 mil­lion in unusual and non-recurring income in their oper­at­ing earn­ings. Nowhere on their bal­ance sheet do you see that the com­pany car­ries over $5.4 bil­lion in off-balance sheet debt. For more details on how we deter­mine Mor­gan Stanley’s true earn­ings, click here. […]

    • […] There are many ways that companies can manipulate accounting rules to overstate earnings, but there is only one place to find out how they do it: the financial footnotes. For example, nowhere on Morgan Stanley’s income statement do you see that the company included $821 million in unusual and non-recurring income in its operating earnings. Nowhere on the balance sheet do you see that the company carries more than $5.4 billion in off-balance sheet debt. For more details on how we determine Morgan Stanley’s true earnings, click here. […]

    • […] and Mor­gan Stan­ley (MS – dan­ger­ous rat­ing). Click here for my recent arti­cle on C and here for the arti­cle on MS. As noted above, there are a num­ber of attractive-or-better-rated stocks […]

    • David Trainer

      Add Morgan Stanley to the list of firms benefiting from SFAS No. 159 in 3Q11. All but two cents of their $1.15 EPS in 3Q11 came from SFAS No. !59.
      And the stock is up on the strong quarterly earnings?

      What?

    • Richard Shaw

      I know this was written a while ago, but it looks like Morgan Stanley is currently overbought.

      http://www.tradersdirect.com/stocks/11347/morgan_stanley/

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