Friday, April 25, 2014   

   Stocks, Stock Swings, Options, and Option Trades

   Disclaimer: Consult a Financial Advisor prior to taking the advice offered. By reading this blog site you agree to not hold any authors or responsible for market loses that you may incur.

 Subscribe in a reader

Subscribe to FastSwings by Email

Register   Login » Blogs Blogs    

Goldman Sachs (GS) Continues to Climb

by Steve Patterson on Tuesday, September 15, 2009 6:50 AM

Goldman Sachs (GS) Continues to Climb

I sold my Goldman Sachs (GS) shares about two weeks ago after a decent gain and moved the funds into the more diverse SSO ETF. But I am now kicking myself as Goldman continues to rally to new highs and analysts upgrade their expectations for the dominant investment bank.

Past Quarter Performance

Goldman Sachs has rallied over the past six months from near $90 a share to now over $175 a share with a recent burst from the $160 range. This rally has occurred as profits have improved steadily and analysts have upgraded the company’s expectations for future quarters. The company has beat expectations the past two quarters after having a terrible November 2008 report. But the turnaround has been quick and explosive. They fell to a $5 loss per share in November of 2008 to only turnaround and report a $3.39 profit in March and then an even better $4.93 profit in June. And now analysts are steadily increasing their expectations for September, December, and the current year.

Profit Estimates

Estimates for the current quarter have rise over the past 3 months from $2.59 a share in profit to a recently adjusted $3.62 profit. Likewise the following quarter has improved expectations from $3.25 a share to $4.43 a share. Plus the stock is trading around a price to earnings (P/E) ratio of 39 with these two quarters growing at 100% and 189% respectively. No wonder the stock continues to move higher.

Goldman Sachs Trade

I think you can be long Goldman up until the next earnings release and even hold the position through the release with some put protection in place. The Wall Street Journal reported on Monday that Goldman led all stocks in selling into strength so you should wait for a pull back and begin to build a position as the stocks sells off slightly.

© 2009

Blogs Parent Separator
Steve Patterson

Swings by Industry and Options by Day

8 comment(s) so far...

Anonymous 9/16/2009

I've had my eye on purchasing some options in Goldman Sachs however, I'm so scared of getting into anything in the financial market right now. Maybe the time is ripe...?

Anonymous 9/17/2009

Steve, <br>Never kick yourself for selling your shares and making a profit. Yes you could have made more if you sold later but that's always the case! Be happy you made a good decision and took some profit.

Anonymous 9/18/2009

With no serious competition left it's no wonder. But then again - everything is going up. Question is: for how much longer? Great blog!

Anonymous 9/18/2009

Everything is a risk. Ii think i will give it a trial. It is a great post.<br>

Anonymous 9/18/2009

hi..great post. i am agree with the upper one.Be happy you made a good decision and took some profit. nice information in the profile.

Anonymous 9/19/2009

The trend is great. I think there is no need to pullback. I 'll encourage anyone to invest in this business.<br>Great post

afrogardens 9/19/2009

Every business is a risk and i think it is a risk worth taking

Anonymous 5/21/2010

Goldman's $5.5bn pay pot is spread across the bank's 33,100 employees, implying an average of $166,000 each. Blogs    
 Market Summary    
 Categories    Blogs    
Downloaded from