Morgan Stanley Screaming Buy: Pro

Even after a two notch downgrade from Moody’s, top money manager Charlie Bobrinskoy says Morgan Stanley is a screaming buy.

Bobrinskoy, who is vice chairman & portfolio manager at Ariel Investments thinks the market is pricing too much pessimism.

“There’s no doubt the business is challenged," he admits. "Volumes are down and risk appetite is down – but that’s a short term phenomenon.”

He’s crunched the numbers and says last quarter they earned 9% annualized return on equity.

“There’s no reason the business should be trading at 50% of book if they can earn 9% of equity. If they can earn that much, it should be trading at book value which is $28 per share.

And he sees another catalyst.

“The Street priced in a three-notch downgrade,” he reveals. But the downgrade was only two notches. In other words, the stock was oversold.

"As liquidity fears come out of this stock, I think there’s a lot of upside,” he concludes.

Posted by CNBC's Lee Brodie

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Trader disclosure: On June 21, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX

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