Tuesday, October 21, 2008

CAKE and C downgraded

And the hits keep on coming! These stocks have been destroyed. Where is the mercy rule?? CAKE does not have any toxic mortgages on it's balance sheet!

CAKE dropped over 6% on an analyst downgrade to close at $9.82.

Cown & Co. analyst Paul Westra cut his rating to "Neutral" from "Outperform" and said the stock will probably trade "in line with the market over the next six months.

They announce earnings on Thursday.

C also dropped a little over 6% on a Goldman Sachs downgrade to close at $14.18.

Goldman analyst reversed his call from a month ago, when he upgraded Citi to "Neutral," and removed it from his "Conviction Sell List," a group of stocks the investment bank advises against holding.

"We believe it will be difficult for Citi to generate profitability over the next 12 months as additional write-downs, lower levels of capital markets activity, and further deterioration in credit quality trends will continue to weigh on the firm's operating results and capital ratios," Tanona wrote in a note to clients Tuesday.

They also slashed their price target on the shares by half, to $11, from the $22 they set last month.

The analyst also recommended buying Morgan Stanley and shorting Citi.

The market closed down 230 points (2.5%). S&P down 3%. NASDAQ down 4%.

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