Continuing yesterday's theme of "last stages of correction means junk sectors in, good sectors out", I am adding to Goldman Sachs (GS) in the $180 range. Up to 2.6% of portfolio. I am feeling even better about this switcheroo into financials yesterday after watching the relative out performance of the group today. [Bookkeeping: Starting Ultra Financial (UYG)] In fact as I take a swig of my Kool Aid, I am thinking of unicorns, mermaids and unemployment rate falling from 5.5% to 5.3% to offset last month's huge increase - and the stampede of CNBC pundits rushing over me to buy stocks tomor...
Still not seeing any capitulation in the generals but we are getting some nice selloffs in just about every other piece of the market. A few medium sized buys today and why - I'll use the edit and update this one post with any other buys today instead of creating new posts...
Research in Motion (RIMM) in $124s - believe this should get to $120 but I had a 0.1% stake so taking it up to 0.4% (almost too small to mention this purchase) I'll add more increments around $120.
TheStreet.com's Jim Cramer says the slide has to end somewhere -- eventually, we'll see a bid.
Is someone having a margin call? That's what I keep thinking as I watch the sickening slide in Motorola's (NYSE: MOT) (Cramer's Take) stock. How can Motorola go down so much? This is a company ...
6/18 - "Goldman Sachs reported 2Q08 EPS of $4.58, beating our $3.44 estimate and the consensus of $3.42. The relative outperformance was driven by revenue strength (particularly in Investment Banking and Principal Investments) coupled with a lower than expected tax rate and non-compensation expenses."
"Management's tone remained cautious on the near-term operating environment. CFO David Viniar referenced a "challenging" current operating environment multiple times during the call. Actions like boosting the liquidity reserve, scaling back buybacks, and reducing leverage suggest that GS is p...
6/17 - "Granted Goldman's Price to Book ratio has been notoriously higher than its peers at around 1.9, but that doesn't make it expensive. The industry, through this downtrend and the losses is in a time of consolidation and new metrics. In fact, Goldman, on Price to Book is inching closer to the sector near the high 1.7s. Since P/E ratios don't mean much if they're negative, for some other Investment firms, analysts need new ways of valuation. But GS, has always been on a profitable path, and its trailing P/E now stands at 8! In a perfect world this ratio would be at 12 and it's forward n...
6/18 - "Unlike widget makers or commodity stocks, there is very little analysis I can do with an investment bank - they are opaque black boxes with moving parts we will never know about. But in Goldman we trust, one way or the other they always find a way to profit. Best of breed in a very lousy neighborhood. 10% year over year profit drop is nothing compared to peers in the financial world - heck that would be considered "high growth" to most."
"The company reported a profit of $2.05 billion, or $4.58 per share, for the three months ended May 30 compared to $2.29 billion, or $4.93 per sha...
6/17 - "It would be only natural to ask how Goldman made $2 billion while Lehman lost $2.8 billion. The answers are many, not the least of which is size: Goldman is the world's biggest securities firm, Lehman Brothers (NYSE: LEH) is the smallest among the four Wall Street investment banks. Other factors could include better hedging, financial decision making, diversification, management and strength of balance sheet."
"Goldman currently holds about $14 billion of leveraged loans, down from $52 billion at their height less than a year ago in August. Residential mortgages, which include the ...
TheStreet.com's Jim Cramer says the acquired Bear Stearns portfolio is worth even less than he thought.
How bad was that Bear Stearns portfolio? I am beginning to believe that JPMorgan's (NYSE: JPM) (Cramer's Take) buy of Bear is looking like a big mistake. It can only be justified by what might have been an even bigger p...
Recap of Jim Cramer’s comments on Stop Trading! Wednesday June 18.
<!---->
Potash (POT), Mosiac (MOS), Agrium (AGU): Cramer says fertilizer stocks are taking a breather, but the sector has been “the most powerful trend I have seen in my career since DSC Communications in the '80s.” He thinks seeds provide more potential for energy development than oil, since Congressional Democratic majority leader Nancy Pelosi is against drilling.
Lehman Brothers (LEH): Those wanting to know Cramer’s opinion of Lehman Brothers should read the bank’s conference call, particularly the Q&A section fea
Unlike widget makers or commodity stocks, there is very little analysis I can do with an investment bank - they are opaque black boxes with moving parts we will never know about. But in Goldman we trust, one way or the other they always find a way to profit. Best of breed in a very lousy neighborhood. 10% year over year profit drop is nothing compared to peers in the financial world - heck that would be considered "high growth" to most.
Goldman Sachs Group Inc., the world's largest investment bank, on Tuesday said second-quarter earnings fell about 10 percent, but still easily beat lowered
Goldman Sachs (GS) reports tomorrow and Morgan Stanley (MS) Wednesday. I own both these stocks as a "barbell" approach to the market - owning some things in places I am not really that positive on - knowing that they can rally at times the rest of the portfolio might dip (which has been the pattern many times since last summer). [Jun 6: Starting to Buy Stuff I Don't Like] That said, combined these 2 make up less than 2.5% of the fund at current time, so it's not much of a barbell. These 2 are the best of an awful bunch - the open question is, as the easy credit days disappear like memor...
You know it’s a tough market when you beat the consensus earnings estimate by $1.16 per share, bucking the trend of an entire industry, and the stock still drops. This is what happened with Goldman Sachs today. Here is a company that is actually thriving in this environment while some of its well known rivals [...]
The Goldman Sachs Group, Inc. provides a range of investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. It operates in three segments: Investment Banking, Trading and Principal Investments, and Asset Management and Securities Services. The Investment Banking segment provides financial advisory...
In light of a previous post in regards to sector rotation, I am beginning a stake in Goldman Sachs (GS).<!--more-->
I've been waiting for a breakout over $185, which was the March high.
We have some serious resistance at the 200 day moving average, $197,
but if that breaks - the sky is the relative limit.
I am doingthis to create a more balanced approach in the fund, sort of a minibarbell effect. I now have 2 homebuilders and 2 investment banks(Morgan Stanley being the other) - while in total they make up 10% orso of the fund, I need to have "something" working when the marketturns to its ea
GS - overpriced
- Stay out, this is probably the most overpriced stock on the big board at the moment. Investors are staying in GS as the "safe haven" for financials. I...
GS looks ready to roll over
- GS looks ready to roll over and follow the rest of its brethren to the dog house. Why anyone would think GS is immune to the fate of the financial's is...