We encourage investors not to sell the brokers on the news this quarter, as visibility is good leading into the rest of the year and valuations are reasonable.
Quality is a little hard to figure out, but strong asset management incentive fees offset weaker restructuring fees resulting in in-line revenue.
Goldman`s in-line quarter compares unfavorably to their 30% upside surprise in the third quarter and Bear Stearns`s and Lehman`s 5 to 10% upside surprise this quarter.
It`s an expensive proposition. Everyone kind of bit the bullet and went ahead with the project.
We came out of halftime running and pressing and I just got some opportunities.
After we`re through with all of the enhancements, I want my clients to say, `Wow. Have you seen the Las Vegas Convention Center?` ... That will be a validation for me.
When you take out the 15 cents and the 20 cents, you can get a number which actually was below consensus. And that`s obviously in stark contrast to what we saw from Lehman Brothers yesterday.
The new combined company is going to be trading at something like 20 to 22 times 2007 earnings. So, it`s very much at the high end of the asset management peer group. Most asset managers trade at that sort of multiple on this year`s earnings, not next year`s earnings.
The fourth-quarter was a bit disappointing relative to both expectations and their strong third quarter.
The combination of standardized protocols and component-based software will make it less and less sensible for corporations to have their own IS staff in the traditional sense,