Sep
15
Written by:
Steve Patterson
9/15/2009 8:50 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 FastSwings.com
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8 comment(s) so far...
Re: Goldman Sachs (GS) Continues to Climb
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...?
By Childrens Bedding on
9/15/2009 9:58 PM
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Re: Goldman Sachs (GS) Continues to Climb
Steve,
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.
By Valet Parking on
9/17/2009 4:35 PM
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Re: Goldman Sachs (GS) Continues to Climb
With no serious competition left it's no wonder. But then again - everything is going up. Question is: for how much longer? Great blog!
By Stock Brokers Comparison on
9/17/2009 10:52 PM
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Re: Goldman Sachs (GS) Continues to Climb
Everything is a risk. Ii think i will give it a trial. It is a great post.
By Home Business on
9/18/2009 8:03 AM
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Re: Goldman Sachs (GS) Continues to Climb
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.
By Job opportunity on
9/18/2009 12:02 PM
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Re: Goldman Sachs (GS) Continues to Climb
The trend is great. I think there is no need to pullback. I 'll encourage anyone to invest in this business.
Great post
By Lower Blood Pressure on
9/19/2009 7:13 AM
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Re: Goldman Sachs (GS) Continues to Climb
Every business is a risk and i think it is a risk worth taking
By afrogardens on
9/19/2009 8:03 AM
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Re: Goldman Sachs (GS) Continues to Climb
That's right. We can never be sure how the market goes so its a good thing if we are able to earn something for our investment.
Trace
Penny Stocks
By Hot Penny Stocks on
9/24/2009 7:10 AM
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