Jase

Panic on Wall Street - Fast Money Recap (9/17/08)

You must be kidding me. Never, ever bet against Goldman. Half that buying today was probably GS buying back their own shares. Earnings are estimated to be $14 per share this year--if history is anything to go by, they'll probably beat by a landslide; earnings above $20 per share wouldn't surprise me in the least. They thrive in this volatile environment. Anyone that thinks the Investment Bank model is broken has to get their head checked. Leverage (read: derivatives) are a useful instruments when used appropriately--they are excellent tools to protect wealth, for example. If you read GS's earnings report issued two days ago, they actually bought back millions of their shares at $180. GS will be fine. The shorts will get killed in the upcoming days when this thing is back above $175. There's no reason why they can't take out their old highs of $250 within the next six quarters--there are deals out there in the market and Goldman are experts at finding them and unlocking value. Their book value is 99.30; at 10x earnings on a surprise of $20 next year (last year their earnings were $24 per share) they are a $200 stock.

No, the Financial Crisis Is Not Over

non1: sorry mate, SKF will break $300 by the end of the year. USO is undergoing a time-correction, you'll see it rally by week's end and continue next week. Sure it'll hover around the $100/barrel mark, but a barrel of oil will break $150 before it breaks $80. Ultimately, however, I do believe that by the end of 2009 we could be back down below $75/barrel.