John Hancock's Schmidt: Likes Lehman, Cautious On Goldman
19 Dec 13:33
By Michelle Rama
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Lehman Brothers Holdings Inc.'s (LEH) results and stock
"look good," said John Hancock Funds portfolio manager Jim Schmidt.
"The market has been good for Lehman," Schmidt told CNBC Thursday, because a
greater proportion of its income is coming from bonds, and "that's been a
better business this year than equities."
Morgan Stanley's (MWD) earnings number "superficially looks good," but the
$152 million restructuring charge makes the net number a little lower, he said.
The company also has problems in its business-underwriting activity and
substantial aircraft lease commitments to worry about as well, he noted.
Goldman Sachs Group Inc. (GS) "turned in very good numbers," attributable to
its "outstanding" trading business despite weakness in Goldman's huge
underwriting and merger and acquisition advisory businesses, he said.
The trading business, however, "isn't as valuable a source of revenue,"
Schmidt noted, so he recommends caution on the company until a there is a
pick-up in IPOs and mergers.
Schmidt doesn't own stock of any of the firms, but John Hancock holds
positions in all three companies.
-By Michelle Rama; Dow Jones Newswires; 201-938-4046;
michelle.rama@dowjones.com
(END) Dow Jones Newswires
12-19-02 1333ET |
