unwarranted discount to its peers.

You look at Morgan Stanley and its peers, you see a lot of reliance on their proprietary trading desks and a willingness to take on more risk. If the markets are reaching a cyclical peak, which I think they are, profits are at risk when the economy slows down.

We still like the company's competitive position but think that Bear Stearns is the most sensitive among its peers to rising rates, given its large fixed income franchise.

Avalanche is a vehicle without peers, selling more than 379,500 units since its spring 2001 launch through December 2005.

While the counter still trades at a discount to our 16.5 times market price-earnings ratio, its current premium over our fair value estimate and strong price appreciation over the past few months suggest that the issue has temporarily outrun its fundamentals, with no further upside in the next 12 months.

We want it to be the institution that it was in its heyday.