Article: Legg Mason stock tumbles nearly 8 percent.

Byline: Laura Smitherman

Jul. 27--Legg Mason Inc., which is poised to become the fifth-largest money manager in the world, saw its stock tumble from historic highs after its earnings report fell short of Wall Street expectations and one analyst took the rare step of recommending that investors sell their shares.

Stock in the Baltimore-based investment firm fell nearly 8 percent, or $8.72, to close at $103.30 on the New York Stock Exchange. That made it the second-worst performer yesterday among financial companies in the Russell 3000 Index.

Legg Mason investors had enjoyed a rapid rise in the stock price after the firm announced last month it ...

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