Apr
1
Written by:
Steve Patterson
4/1/2010 11:24 AM
Finally Sold Goldman Sachs (GS)
I have been holding Goldman Sachs (GS) stock for quite some time and had been looking for a good opportunity to exit the position. Earlier this week I got the chance to sell and took the opportunity to end the trade with a small 5-6% loss. The stock had rallied up to $189 a share at the end of October 2009 but estimates began to slip and the stock steadily fell to below $150. A recent financials rally pulled Goldman Sachs from the price of $148.72 up to $177.90 a share on March 19th. During this time the fundamentals of the company did not change.
The current earnings estimates are as weak as ever for Goldman. Just this week, estimates were cut again from $4.13 a share in the current quarter down to $4.02 a share. Revenue is rising this quarter at 18% compared to the same quarter a year ago. But revenues next quarter are expected to fall 14.8% with current year revenue flat compare to 2009.
Furthermore, the Russell 2000 gave a hold signal 5 trading days ago and Goldman Sachs stock broke down through a top formation, it looks like an excellent time to sell. The stock price fell to $172.87 on March 26th to rally the next day. But has now fallen to $170.63 a share, creating a pretty decent top formation from a technical perspective. A continued financials rally could stabilize the stock near its current level but the underlying fundamental problems should keep it from rallying with the rest of the industry.
Goldman Sachs (GS) 6 Month Chart
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6 comment(s) so far...
Re: Finally Sold Goldman Sachs (GS)
Although the fundamentals might suggest a sell signal, I would suggest that GS remains a hold; I am also holding some of the British Banks: Lloyds TSB and RBS as I feel these too are recovery stocks.
By Howie on
4/2/2010 4:52 AM
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Re: Finally Sold Goldman Sachs (GS)
Good for you. Would this be good long term investment?
By alabang condos on
4/3/2010 4:09 AM
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Re: Finally Sold Goldman Sachs (GS)
I don't think it is a good investment until the companies revenue and earnings begin to improve instead of the expectations decreasing as we see now.
By Steve on
4/3/2010 7:52 AM
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Re: Finally Sold Goldman Sachs (GS)
GS business practices have taken a hit recently with allegations that it had helped Greece conceal its debt levels in 2001 through a series of complex derivatives deals. True or not, GS has acknowledged in its annual report that adverse publicity or bad pr could pose a risk to its bottom line. I say your decision to sell is a good one.
By Jennifer Smith on
4/9/2010 11:44 PM
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Mr
If the company is improving on earnings and revenue, this is going to be a good investment for a long term.
By stock trading class on
5/10/2010 9:24 AM
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Re: Finally Sold Goldman Sachs (GS)
True or not, GS has acknowledged in its annual report that adverse publicity or bad pr could pose a risk to its bottom line. I say your decision to sell is a good one.
Support completely them in this step.
By Kreuzfahrt on
5/14/2010 4:10 PM
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