Guggenheim cuts BofA and Goldman


Apparent nervousness about bank earnings has Guggenheim removing its Buy ratings on both Bank of America (BAC) and Goldman Sachs (GS).

Bank managements (though not necessarily Goldman and BofA) have made no secret this month in presentations, leaks, and interviews that mortgage banking and trading revenue stunk this quarter.

Both stocks are off about 0.5% in premarket action.

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Comments (6)
  • billmichael
    , contributor
    Comments (141) | Send Message
     
    When Boston Beer got to $125 a share a famous ratings house said in summary that they just couldn't see how SAM could go any higher. The stock immediately dropped five (5) dollars. That was a year ago and today shares in SAM are near $250.00 per share. Another VERY famous ratings house once stated that the mortgage securities that later collapsed and led to the financial crisis of 2008 were perfectly sound and buyers should feel free to pile in. Take that any way you want.
    27 Sep 2013, 08:31 AM Reply Like
  • what do I know
    , contributor
    Comments (1044) | Send Message
     
    I am glad to see that the AIG suits (the famous 77 suit) did not enter the rating calculation.
    27 Sep 2013, 10:07 AM Reply Like
  • J.J. Cohen
    , contributor
    Comments (289) | Send Message
     
    yes, I noticed that too (see my post below)...which means, while I like your screen name, I think you know alot...but now you got me thinking, what do I know....too :) - Good weekend!!
    27 Sep 2013, 07:52 PM Reply Like
  • J.J. Cohen
    , contributor
    Comments (289) | Send Message
     
    sunk this quarter??? THIS IS NO BRAINER!! It was summer and as a real estate professional, I can tell you that real estate slows down typically in summer as people are on vacations and typically when I like to buy the most because of prices being lowered mostly....I bet it picks back up this quarter and the next after that...For as interest rates stay low, we are still in an upward swing in real estate...

     

    So between that and all the noise in Washington this week and and the rest of the year, What a great opportunity to buy more BAC on dips trading below 14.
    27 Sep 2013, 11:13 AM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
     
    jj, you are so right longer term but watch out for the section 77 decision - looks like December decision now and other things that will drop this stock lower than 14. That is the buying window I am looking at.
    27 Sep 2013, 06:15 PM Reply Like
  • J.J. Cohen
    , contributor
    Comments (289) | Send Message
     
    Hey healthpicker - good to hear from you...I just became a contributing author and hope to write more on SA -

     

    re: section 77 lawsuit, I understand...but I also, wouldn't be surprised if the verdict is upheld - Like the poster above you, it did not go unnoticed that the lawsuit was not cited in their reasoning to downgrade the stock...I believe the case picks back up in November per the last mention...time will tell...and IMO it's NOT the losing of the case or the upping of the price they may have to pay that causes such worry and stock decline but rather, the "NOT KNOWING" of what it will be.

     

    So yes, it could sink back to 11 as some say or soar to 17-18...Crazy stuff, this stock market thing ;) Have an excellent weekend.
    27 Sep 2013, 07:46 PM Reply Like
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