July 21, 2011 / 11:59 AM / in 6 years

Instant view: Morgan Stanley posts Q2 results

NEW YORK (Reuters) - Morgan Stanley posted a second quarter loss to shareholders of $558 million, after taking a charge of more than $1.7 billion for converting a block of preferred stock into common shares.

Following are comments from investors about the results:

MALCOLM POLLEY OF STEWART CAPITAL ADVISORS

“It’s more of a surprise that the other investment banks had less impressive trading numbers given the amount of volatility in the market. So it was nice to see that Morgan Stanley was able to translate that trading volatility into trading profits.”

BRIAN MURRAY, EQUITY TRADER AT ING INVESTMENT MANAGEMENT IN NEW YORK

“It’s a very good number. There is so much negativity about there in, financials, with strong macro headwinds. Certainly the Morgan Stanley numbers will help , but does it set a tone for the rest of the financial stocks? It’s hard to say. Hopefully yes.”

RICHARD BOVE, ANALYST, ROCHDALE SECURITIES:

“Morgan Stanley is the new Goldman Sachs. Every one of their divisions shows an improvement and the improvement in trading operations is especially impressive. Other banks saw a decline in trading but not Morgan Stanley. The reason behind the improvements is clearly CEO James Gorman. I’ve been a big believer in this guy from the beginning. He moved money into trading. He reallocated the way capital was spent by eliminating the risk trades and focusing heavily on the third party trading.”

PETER KENNY, MANAGING DIRECTOR AT KNIGHT CAPITAL IN JERSEY CITY, NEW JERSEY:

“There is definitely a positive tone to the market as a result of the very welcome news that some of these financials are finding traction in their earnings cycle. Definitely a positive tone this morning that I haven’t seen in some time.”

MATT MCCORMICK, PORTFOLIO MANAGER, BAHL & GAYNOR INVESTMENT COUNSEL:

“This is definitely a beat. Morgan Stanley managed to out-Goldman Goldman Sachs on the investment banking and the trading side. This is a pleasant surprise with them performing better than expected on EPS, investment banking and trading and those are the only numbers investors will care about today. The stock is going to ge up today.”

MICHAEL HOLLAND, FOUNDER OF HOLLAND & COMPANY, LLC

“The trading was the key. They managed risk very well or were lucky or both. That was a pleasant surprise.”

Reporting by Aleksandra Michalska, Edward Krudy, Svea Herbst and Andrew Longstreth; Compiled by Dan Wilchins

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