The Morgan Stanley Q3 2010 forensic report and updated valuation is now available for download to all subscribers – 
Morgan Stanley Q3 2010 Analysis and Updated Valuation.
I will be exporting strategic portions of the model for pro and
institutional subscribers over the next few days which will allow a
forensic view of the balance sheet holdings. Below is an excerpt of the
report, as well as some links to the mainstream media’s reporting of
Morgan Stanley’s quarterly results to allow subscribers to discern the
difference in both our approaches and results.
Mainstream Media’s Reporting of Morgan Stanley’s Q3
- Marketwatch, reposting the Businesswire release
- Businessweek on the same
- and Zackr’s Investment Research, which actually is an analysis firm, and not a news reporting agency
The BoomBustBlog Way
I have taken the liberty to excerpt a few paragraphs for those that
don’t subscribe in order for you to ascertain the difference between
reported news and analysis. Feel free to click on any page to enlarge to
print quality size.
Morgan Stanley is also extending its abysmal track record in CRE with the $1.2bn loss in Revel
In Q3 2010 Morgan Stanley reported a loss of $229m relating to write-down of Revel Entertainment Group. With this the carrying value of investment in Revel Entertainment Group is almost worthless at $40m. To give a background, Morgan Stanley had invested almost $1.2bn in Revel Entertainment Group LLC’s Revel casino in Atlantic City way back in 2007 (the absolute top of the CRE bubble). In 1H 2010, the company had written-down approximately $951m on its investment in Revel bringing its investment down to $240m the balance of which was written down in Q3. The casino project has been stalled since 2009 due to escalating costs, financing issues and the misfortunate death of several top executives from Revel Entertainment, Tishman Construction, and APG International in July 2008 as the charter jet they were flying in crashed. Revel is one of the classic examples of firms investing in real estate pet projects at the height of bubble.
For those who are not familiar with the MS CRE investing results, I strongly recommend you review the following article, in its entirety…
”Wall Street is Back to Paying Big Bonuses. Are You Sharing in this New Found Prosperity?“
Interested parties may click here to subscribe.