Morgan Stanley and Dean Witter, with a LARGE RETAIL BASE, are merging. (Did everyone forget this or did the shorts conveniently omit that part? Thought you'd be interested in someone else's interpretation of this from the Motley fool, posted yesterday.
From: LMoss
Today's Dow Jones "explanation" of the drop in price of AGPH is a fine illustration of how the market and/or those who interpret it have the attention span of a gnat.
The news story explained that investors were concerned about the move of biotechnology analyst Doug Lind from PaineWebber to Morgan Stanley. Dr. Lind has been bullish on AGPH. Paine Webber, unlike Morgan Stanley, has a large retail presence (e.g. the capability to "distribute" stocks to retail customers). Thus, according to the reporter, investors thought that the move might have a negative impact on AGPH.
Sounds like a good theory, except that one month ago Morgan Stanley and Dean Witter Discover, a firm with a large retail presence, agreed to merge. This was front-page news in both the financial and national press. The merger, it was explained, would make the new entity a powerhouse in both the source and distribution sides of the business.
In summary, Doug Lind is likely to have more influence on the market from his base at Morgan Stanley Dean Witter Discover than he would have had at Paine Webber. |
