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TLStockPicks (89.12)

Goldman Sachs Doesn't Comment on Rumors?

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June 13, 2008 – Comments (2) | RELATED TICKERS: GS

I'm bullish on GS.  I own shares of GS.  I think they're best in breed, well managed, and did the best job at navigating the whole asset write-down debacle.  But, as most of you know, the stock took a beating last week due to rumors of a large, unexpected write-down.  Among many articles covering that story, this one also has a blurb on it:

http://www.foxbusiness.com/story/markets/stock-futures-gain-oil-rise--barrel/

The thing that really makes me scratch my head is that the Goldman spokesman stated: "We don't comment on market rumors." 

Uh... since when???

Here's Goldman denying a similar rumor November 2007:

http://www.reuters.com/article/ousiv/idUSN0260359920071102

Quote from that article:

"Goldman Sachs Group Inc. on Friday denied market speculation that the top U.S. brokerage by market value could announce billions of dollars in writedowns.  'We've said there's no truth to these rumors,' said Ed Canaday, a spokesman for the brokerage."

 And here's Goldman denying another rumor August 2007:

http://www.finalternatives.com/node/2257

In relevant part: "Goldman Sachs denies that it is liquidating its troubled flagship hedge fund, Global Alpha.  The Wall Street giant is seeking to squelch today's market rumors that it would be shuttering the once high-flying $10 billion fund, which has hit on hard times."

But this time around, no comment?  It's a little scary, especially with earnings right around the corner.  I'll still hold on since I believe in GS, but you can bet I'll be frantically reloading my web browser at 4:00pm Tuesday afternoon.

 

2 Comments – Post Your Own

#1) On June 13, 2008 at 11:43 AM, leohaas (32.57) wrote:

"I'm bullish on GS.  I own shares of GS.  I think they're best in breed, well managed..."

Well managed? Their management included idiots like Joshua Bolton, Jon Corzine, and Henry Paulson! What is to keep this company from imploding like BSC?

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#2) On June 13, 2008 at 12:10 PM, TLStockPicks (89.12) wrote:

Well, they did well enough in their careers to get where they are now.  I won't try to be an armchair politician and grade them on their political performances... but I challenge you to point to their performance at GS to back up your contention that these guys are idiots.  And after you stumble with that one, try to do the same with the current management team.

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