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9 pts

Opinion on  Goldman Sachs Group Inc The (GS)     Sector: Financial  >  Industry: Investment Services
Goldman Sachs is Andy Dufresne

Apr 09, 2008 02:32 PM GMT
Gekko
Return Risk
+6.40% HIGH
Sr. Associate

Goldman Sachs(GS), just like the hero of Shawshank Redemption is trapped in a prison for a crime that it didn't commit. Just like Andy, Goldman will have its good days and bad days on the inside, but ultimately will escape. Earnings were down last quarter, but still beat the estimates.
Let's look at some numbers and compare it to the sector.

P/B: Goldman 1.49, Sector 1.75
P/E: Goldman 6, Sector 14
P/CF: Goldman 4.75, Sector 11.65
P/S: Goldman 0.68, Sector 3.31

5-year sales growth rate: Goldman 30.94%, Sector 17.15%
5-year EPS growth rate: Goldman 43.78%, Sector 16.45%

Net income/employee: Goldman $380, 021, Sector $132,411

ROE 5-year avg.: Goldman 25.16%, Sector 14.94%

Simply put, GS provides both growth and value. It will probably be a bumpy ride for a while, but within the next five years you should be well rewarded.


Update 08/11:

I don't think that we've seen a bottom in financials, but I'd still be a buyer long term.  This is the best investment bank on the Street, bar none. 


Update 08/21:

This stock is getting punished along with all the brokers.  When the P/B gets closer to one, I'm going to back up the truck. 


GS:  This call was made on 04/09/08 @ $176.32001
Rating:   Positive   $176.32001 (04/09/08)
Closed:   09/11/2008 @ $151.36 (-14.16% in 155 days)


Comments (3)

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Astukphoto
Armin Stuk   22%     2 points   commented 606 days ago reply

Undoubtedly, the money in the stock market is where the long term strategies is. So I believe that GS is good investment going forward. BTW- I hold GS in my marketocracy financials sector fund and will continue to hold.
see public page here:
http://www.marketocracy.com/cgi-bin/WebObjects/Portfolio.woa/...

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Bearishguy
The Big Bear   86%     0 point   commented 584 days ago reply

Sweet.

I'd guess GS is also on Cramer's "Best of Breed" list =)

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allstarinvestor   85%     3 points   commented 579 days ago reply

nice picture my man wall street is an awesome movie, I would say that GS being on cramers Best of Breed list would make me more bearish on the stock than bullish... hah


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Who voted on this idea?
Bearishguy
The Big Bear 86% 05/01/2008



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