'Good As Goldman' Not So Good 21 comments
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When the credit crisis first hit last year, Goldman Sachs (GS) was crowned the king of Wall Street due to the fact that they not only had little or no exposure to subprime, but they were actually short the stuff. When the rest of Wall Street was starting to 'fess up to losses in their subprime mortgage portfolios, Goldman was announcing record profits. The aura of Goldman spread across all asset classes. They became a modern day EF Hutton. Whenever an analyst from Goldman made a call, it made headlines. When Goldman said oil was going to $200, it wasn't a matter of if, but when.
Today, however, things for Goldman aren't much better than they are for the rest of the brokerage sector. As shown below, Goldman is now down more than 70% from its peak of over $250. While this is still considerably better than the rest of its peers, unfortunately for Goldman, it is catching up to names like Morgan Stanley and Merrill Lynch. It just goes to show that even the best storm preparations don't always stand up to the elements.
In order to completely catch its peers in terms of declines, GS still has a ways to go, however. To match the declines in its two closest competitors (Morgan Stanley (MS) and Merrill Lynch (MER)), Goldman would have to fall to $51 and $41, respectively. To match the decline of Bear Stearns, the stock would have to fall to $11, and if the unthinkable were to happen and Goldman had a decline similar to Lehman, the stock would have to fall to 20 cents.
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This article has 21 comments:
It's a shame that the quality of articles of this low caliber have to reflect negatively on seeking alpha.
On Nov 10 09:08 PM junkinthesack wrote:
> we know to filter goldman predictions
On Nov 10 09:08 PM junkinthesack wrote:
> we know to filter goldman predictions
On Nov 10 09:08 PM junkinthesack wrote:
> we know to filter goldman predictions
On Nov 10 09:08 PM junkinthesack wrote:
> we know to filter goldman predictions
On Nov 10 09:08 PM junkinthesack wrote:
> we know to filter goldman predictions
On Nov 10 09:08 PM junkinthesack wrote:
> we know to filter goldman predictions
On Nov 10 09:08 PM junkinthesack wrote:
> we know to filter goldman predictions
On Nov 10 09:14 PM investor88 wrote:
> Bespoke has written a useful article and recapitulate useful FACTS.
> We can learn from the facts, never mind opinions and interpretations.
> Everyone is entitled to his analysis and conclusion whether right
> or wrong. No one is perfect.
>
www.dhantube.com/
GM, Ford losing $billions... NO PROBLEM!
Goldman losing $billions... NO PROBLEM!
AIG... How much do ya need? $50, $100, $400 billion... NO PROBLEM!
American Express... Not a bank? Poof! Now you are! $Billions from the government... NO PROBLEM!
Buffett losing money? They'll soon form as a bank with fed's approval... Need cash Warren? NO PROBLEM!
Cramer... Did you give some bad advice and all of the lemmings followed you? NO PROBLEM!
Oh! Ya! Giving out about $2 TRILLION in government loans (U.S. Taxpayer MONEY) and ya don't want to tell anybody where the money went? NO PROBLEM!
www.bloomberg.com/apps...
Just belly up to our new government... Pig slop tax dollars for America's business FAILURES!
Pelosi... Paulson... Do you really expect ANYONE with a dime to their name to invest into ANY of these failed companies? Get real.
Come on everyone! Form your own bank and Aunt Nancy and Uncle Paulson will take good care of you. They will eventually bankrupt the economy in a few months, but they'll be living in the Cayman Islands by then.