About a month ago, ubiquitous banking analyst (media shy) Dick Bove told Bloomberg’s Trish Regan that buying Morgan Stanley’s stock will enable you to buy that house on the coast of Spain you’ve always dreamed about. Well, since Bove made that call the stock has tumbled, going from around $20 a share to $16, a nice 25% drop. This is what Bove said:
“I think Morgan Stanley will allow you to buy that house on the coast of Spain. I think that stock is so cheap right now, it’s overwhelming. It should be bought and bought very aggressively, right now.”
Here’s the video of Bove’s call. You can just jump to the last few minutes of the video to hear Bove’s non-exuberant remarks on Morgan Stanley. Perhaps Bove was just caught up in the enthusiasm of Trish Regan and being on the air with her, maybe he felt like he had to say something wild and crazy to impress her. If he’s trying to impress her though he might want to go with a different suit. Don’t think the brown is such a good look.
On second thought, maybe Bove was just saying that since Spain’s real estate market is collapsing houses are that much cheaper. Yeah, right. As always, be careful when listing to analysts on TV.