Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
TheStreet.com's Jim Cramer says it's after all the analysts have finally cut numbers on the financial giant.How tempting is it to buy Goldman Sachs (NYSE: GS) (Cramer's Take) after we have had number cut after number cut after number cut.
But history says you can't. These stocks will not bottom until three more analysts cut their numbers -- they are still using the old estimates.
Goldman has gone from poster boy to whipping boy without much happening. The thoughts are that the slowdown in everything fixed income is going to cut estimates in half for the next quarter.
I believe that is harsh. But I would also point out that the stock at $177 isn't exactly priced for perfection.
Goldman's a strange bird here. It did a big private equity fund raise at the wrong time but I don't believe it spent much of it. It didn't do a lot of bad mortgages but it did do a lot of corporate debt to take companies private and that's what they are hung on.
Goldman's beginning to trade as if fixed income is going to go away so if it hasn't you could have a run. But I am adamant that there can't be a run until everyone who is following the company gets in line and then you can, after the cuts, have an upside surprise.
RELATED LINKS:
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Goldman Sachs.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
2-19-2008 @ 10:10AM
James Gregory Winfield said...
I am looking to invest in a IRA account and want to know which one to get into.
2-19-2008 @ 12:01PM
w.vonfricken said...
Would like to find the company that is German and is drilling into the earths magna and putting water down for steam to run electric power stations ,have you heard??