Fellow Masters, the almighty Goldman Sachs Group (NYSE:GS) is now trading at $137 a share. Goldman is just 5.5% away from its 52-week low. If there's one company we never bet against, its Goldman.
You don't need a history lesson on how well run and how often GS wins in corporate America. Should this stock keep falling and hit a new 12 month low -- its a sell the house and buy Goldman kind of move.
Goldman Sachs Group Inc (GS) shares have traded between $129.50 and $175.34 over the past 12 months. Goldman Sachs shares are now trading with a P/E Ratio of 15.5 and EPS of 9.11. GS shares one of the biggest losers today, down -2.58% or $-3.64 and trading just over $137.
Forget what we think, just listen to this lovefest rating from JPMorgan (JPM) that was released yesterday. They believe Goldman shares could recover 28% in the next 12 months. Would you dare bet they don't?
(http://www.businessweek.com) A JPMorgan analyst upgraded Goldman Sachs on Tuesday, saying there is a good opportunity to buy the stock as themarket overreacts to negative press.
Goldman Sachs has been under the watchful eye of lawmakers, regulators and law enforcement since reaping billions of dollars from bets that the housing market would collapse.
One of Goldman's alleged strategies was to create and market mortgage bonds to investors who believed the sector would stay strong. The bank bet against the same bonds, stemming its losses or generating profits on the trades. Critics say that's a conflict of interest.
The mortgage deals drew fire from the Securities and Exchange Commission, which brought civil fraud charges that Goldman settled in July 2010 for $550 million. It admitted to misleading clients with flawed marketing materials, but did not admit or deny wrongdoing in the civil case.
The deals came up again last month in a report on the financial crisis from the Senate's Permanent Subcommittee on Investigations. The report said that Goldman marketed four sets of the bonds to banks and other investors without telling them that the securities were very risky. It said Goldman secretly bet against the investors' positions and deceived the investors about its own positions to shift risk from its own balance sheet to theirs.
And earlier this month Goldman disclosed that it faces a possible civil fraud complaint from the Commodity Futures Trading Commission for still other alleged violations.
Kian Abouhossein of JPMorgan said in a client note that the negative press has helped to deflate Goldman's stock price, presenting a buying opportunity.
The analyst also indicated that investors should not put too much stock in speculation about potential management changes, as Abouhossein believes Goldman is one of the investment bank "machines with a deep talent pool not dependent on a few."
The analyst raised the New York company's rating to "Overweight" from "Neutral" and kept a $175 price target.
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