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SideShowMel0329 (79.43)

Goldman Sachs...advice?

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December 01, 2008 – Comments (5) | RELATED TICKERS: GS , MS , UBS

After the financials collapsed, I had been looking to go long with GS because out of all the remaining banks, GS looked to be the most fundamentally sound. Good P/E and P/B, outperforming competitors like MS and UBS over a 1 year period, and seemed to be tied in with the guys on capital hill (hell, if those financial ceos are going to squeeze taxpayer money from Congress, I might as well try to profit from it, right?).

Anyways, it was the rumored Buffet purchase that convinced me that GS was a good move. I waited until it bottomed and bought in at $70. It's been hovering around the price over the last few weeks.

But the recent earnings forecasts are starting to scare me. Earnings report is out on December 15th and looking at the low trading volume, I think the market is going to have a severe volatile reaction after it's released. Credit Suisse expects a pretty heavy loss, other analysts are averaging out with a loss also.

Should I hold? Is this poor earnings forecast a sign that GS is not ahead of the game like I thought it was? Anyone else own this stock?

5 Comments – Post Your Own

#1) On December 01, 2008 at 3:33 PM, alicat2008 (94.70) wrote:

I own it.  I am not worried.  Hang on for a bit.  Things will work themselves out.  Maybe not in the next few quarters, but they have the means and the will.  Everything looks bad right now.

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#2) On December 01, 2008 at 3:34 PM, DemonDoug (98.84) wrote:

I'd get out.  And get out now.

Don't own the stock, never will.

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#3) On December 01, 2008 at 4:09 PM, DaretothREdux (45.97) wrote:

Seem a little late to tell you know but I always run on bad earnings. Stock will drop then rebuy if you think it's a long term hold. If you still think the company is fundamentally sound (I don't think any banks are right now except small local banks) then average down and buy some more after the drop. We have not seen the bottom yet in my opinion of GS or the market.

 As I have been saying for months:

The Economy doesn't run on hope,

Daretoth

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#4) On December 01, 2008 at 4:43 PM, goldminingXpert (30.95) wrote:

I was short it but covered in the 60's on the big collapse in November. Will reshort if they can get it back to 90. Long term headed for the 30's.

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#5) On December 01, 2008 at 5:27 PM, eldemonio (98.84) wrote:

Can we say that GS is the least crappy of the large financial banks?  If so, it is still crappy.  You should have waited until the earnings report to get in, if you really wanted to get in.  Buffet can afford to make deals that hedge any losses he may be exposed to, I am guessing, you probably can't.

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