Goldman Sachs (GS) 02 (May 10 - Dec 21)

Re: Goldman Sachs (GS) 02 (May 10 - Dec 18)

Postby winston » Thu Dec 20, 2018 10:46 pm

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The banking sector has been among the worst since the correction started in October. And Goldman Sachs (NYSE:GS) has been one of the stocks at the center of the fray.

Over the past two months, shares have plunged from $225 to under $175 today. That significantly outpaces losses for the broader financial sector, which clock in at 15% during this correction.

Goldman is facing one particular problem. That is its business dealings with 1MDB, a scandal-ridden Malaysia state investment fund. GS claims innocence, while Malaysia alleges bad faith on Goldman’s part.

In any case, banking scandals tend to occur frequently and usually don’t leave much of a lasting mark. In this case, Goldman’s involvement does not appear to have been enough to endanger more than a quarter or two of earnings at the worst.

And what earnings Goldman is having. Goldman is earning more than $25 per share annually, putting its P/E ratio at 6.5x. Analysts expect earnings to rise slightly next year.

The company is earning gobs of money and can pay dividends and buy back its extremely cheap stock. Additionally, once the trade war winds down, there should be renewed deal flow for its investment banking business along with clear sailing for the company’s growing asset management operation.

Don’t sleep on GS stock here. This is an unbelievable entry point for one of America’s strongest financial institutions.

Source: Investor Place
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Re: Goldman Sachs (GS) 02 (May 10 - Dec 19)

Postby winston » Fri Jan 11, 2019 6:40 pm

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Goldman Sachs could be liable for $5B in Malaysian scandal

By Kevin Dugan

Goldman Sachs may be on the hook for as much as $5 billion for its role in a Malaysian bribery scandal — twice previous estimates of a worst-case scenario, according to a report.

The Wall Street behemoth — which helped raise about $6.5 billion for the 1Malaysia Development Berhad, better known as 1MDB — faces increasing heat from regulators, federal prosecutors, and the Asian country over the deal, whose proceeds largely paid for bribes to government officials and the lavish lifestyle of playboy financier Jho Low.

Goldman will likely be forced to forfeit $600 million it made in fees, pay at least $1.2 billion in fines to the SEC, and at least another $2.7 billion in money returned to Malaysia, according to an interview with Peter Henning, a former criminal prosecutor at the Justice Department, which was published in a Thursday research report from Wells Fargo.

The rest would likely be doled out to other agencies investigating the bank, Henning said.

The sentiments were echoed by Wells Fargo analyst Mike Mayo, who has been critical of Goldman’s involvement.

“There is no way to minimize the mishap with 1MDB, and now it is a matter of assigning blame and the degree,” said Mayo, reckoning that charges could range anywhere between $300 million and $5 billion in a “worst-case scenario.”

Last month, UBS estimated that Goldman’s liability would top out at around $2.5 billion — one of the highest estimates at the time.

The staggering new liability estimates come despite the fact that government prosecutors are less willing to impose sky-high penalties than in previous years, said Henning, who was also an investigator at the Securities and Exchange Commission.

“The Justice Department and the SEC are unlikely to seek a large penalty in the current environment that takes into account the impact on shareholders who bear the ultimate burden of any penalty,” he said.

The funds allegedly embezzled by Low paid for luxury real estate, Basquiat paintings, a transparent piano for model Miranda Kerr and backing for the Leonardo DiCaprio movie “The Wolf of Wall Street.”

Last month, Malaysia and Singapore opened criminal investigations into the bank, adding to the SEC, DOJ, Federal Reserve and New York Department of Financial Services investigations that were already ongoing.

In addition, Malaysia’s finance minister told the Financial Times it’s looking for $7.5 billion in reparations from the bank.

The scandal has sent company’s stock tumbling by more than 35 percent, to $176.00 on Thursday, from its all-time high of $273.38 in March.

Investors are bracing for next week’s fourth-quarter earnings report from Goldman and will be looking for guidance from CEO David Solomon, who briefly defended the bank in a holiday video last month, saying Goldman did “detailed due diligence” in its role.

“We will look for him to attempt to ease the market’s concerns about GS’s involvement with 1MDB and the potential ramifications,” another bank, Barclays, said in its investor note Thursday.

Source: NY Post

https://nypost.com/2019/01/10/goldman-s ... n-scandal/
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Re: Goldman Sachs (GS) 02 (May 10 - Dec 19)

Postby winston » Fri Jan 25, 2019 8:45 am

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Go to the good end of Wall Street

by Dan Caplinger

Goldman Sachs has a reputation for successfully finding ways to make money in any market environment -- no matter how challenging.

Goldman's most recent earnings report tells just how smart the investment banking giant can be under tough conditions.

In the fourth quarter of 2018 -- a period when financial markets were going through volatility the likes of which investors hadn't seen in a decade -- Goldman managed to bring in a half-billion dollars more in revenue than most had expected, and profits topped the consensus forecast by more than a third.

Between consistent excellence in the investment banking division and newfound promise in consumer banking, the Wall Street giant is making all the right moves.

At around $200 per share, Goldman is far from a penny stock. But for investors who want to truly invest their money rather than just take a flier on a random pick, Goldman Sachs is a solid choice you can hold on to for the long run.

Source: Motley Fool
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Re: Goldman Sachs (GS) 02 (May 10 - Dec 19)

Postby winston » Thu Jan 31, 2019 11:46 pm

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Undervalued Stocks to Buy Now: Goldman Sachs Group Inc.

Goldman Sachs Group Inc. (NYSE: GS) stock is trading under $200 per share, well below the 52-week high of $275 per share.

The financial institution has been exposed to the broader macroeconomic woes that have rattled sentiment. Today, the company has a VQScore of 4, which places it squarely in our “Buy Zone”.

At some point, a stock with big long-term upside like GS gets so oversold it becomes cheap. Goldman Sachs is trading at very cheap levels right now. Its price/earnings ratio of 7.91 is interesting, but even more so is the fact that it’s trading at a price-to-tangible-book value of just 0.87. If you were to liquidate Goldman Sachs, the value of the stock would be 14.9% higher from Monday’s closing price.

Goldman’s one-year price target is $229 per share, which also represents about 14.9% upside from today’s price level.

That upside is roughly double the historical annual return of the S&P 500.

Source: Money Morning
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Re: Goldman Sachs (GS) 02 (May 10 - Dec 19)

Postby winston » Wed Feb 19, 2020 11:36 pm

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Why Goldman Sachs (GSBD) Might Surprise This Earnings Season

Goldman Sachs is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat.

After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for GSBD in this report.


Source: Zacks Equity Research

https://finance.yahoo.com/news/why-gold ... 02200.html
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Re: Goldman Sachs (GS) 02 (May 10 - Dec 19)

Postby winston » Thu Apr 16, 2020 1:40 pm

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Goldman Sachs Misses Q1 Profit Forecast as Credit Provisions Surge; Posts Solid Revenue Gains in Global Markets

Goldman Sachs said market volatility pushed big gains in trading revenues but noted credit loss provisions tripled from last year as the coronavirus pandemic hit its loan book.

by MARTIN BACCARDAX

Goldman Sachs Group (GS) - Get Report posted weaker-than-expected first quarter earnings Wednesday but noted solid gains in revenues from its trading division and a record increase in customer deposits.

Goldman's net credit loss provision for the quarter, however, was $937 million, a more than three-fold increase from the first quarter of last year "as a result of continued pressure in the energy sector and the impact of COVID-19 on the broader economic environment," the bank said.

Goldman Sachs said earnings for the three months ending in March were pegged at $3.11 per share, down 46% from the same period last year and well shy of the Street consensus forecast of $3.35 per share.

Net revenues of $8.74 billion were modestly lower from last year but topped analysts' estimates of a $6.75 billion tally.

The revenue beat was boosted by solid gains in fixed income and commodities trading, where revenues rose 33% to $2.97 billion, Global markets revenues, in fact, jumped 28% from last year to $5.16 billion and customer deposits rose by a record $12 billion, Goldman said.

Source: TheStreet

https://www.thestreet.com/investing/gol ... yptr=yahoo
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Re: Goldman Sachs (GS) 02 (May 10 - Dec 19)

Postby winston » Tue May 19, 2020 9:49 pm

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Warren Buffett Just Dumped Goldman Sachs -- Here's Why I'm Not Selling

The most notable stock sale in Berkshire Hathaway's first quarter caught many by surprise.

by Matthew Frankel, CFP

Goldman's business is actually set up to do quite well in turbulent markets.

Trading revenue tends to pick up and underwriting and M&A advisory businesses can have quite an active pipeline of business.

Goldman also has relatively low consumer and small business loan exposure compared with most other U.S. banks.




Source: Motley Fool

https://www.fool.com/investing/2020/05/ ... lrf0000001
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