Goldman Sachs reported stellar second quarter earnings on July 14th, 2009. Their earnings actually surged 33%, which was way ahead of expectations. Jeff Harte of Sandler O' Neil said there are three things to take away from Goldman's earnings that can be applied to other banks.
1) Goldman is the best in breed.jpg)
2) Capital markets will be better than expected
3) Commercial real estate is still unimpressive.
With these insights, some analysts shared their view on whether Goldman's stock is a buy. Tim Seymour says he thinks they are a great company, but wouldn't add any new money at these levels. Pete Najarian recommends buying if Goldman pulls back to $140 per share.
Using technical analysis it is easier to determine if Goldman Sachs is a buy at these price levels. Goldman Sachs, or stock symbol GS closed at $149.66 today. It has been bumping up against strong resistance at the $150 level or over a month now. Looking at a 4 year weekly candlestick chart, it is easy to see why this resistance is so strong. There is a horizontal line of resistance as well as a downward sloping trendline from the 2007 highs now coming in at the $150 level. Even the strong earnings today couldn't drive the price through this resistance level. Given the recent market surge, and these strong earnings, it is hard to believe that Goldman's Sachs' stock price will have the power to break through this line of resistance.
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The Right won't be satisfied until our children are working 20 hour days in dirty factories and our elderly are dragging their half-dead starving carcasses to the soup kitchens for a shot at some bone soup. Then they'll tell us what they tell us now which is that "no one is starving in America." They'd love to see us clawing each others eyes out, licking our chops just for the chance to work for rotten scraps. The proponents of social Darwinism will never give up until they've made their sick capitalist utopia a reality. Therefore we, the People, can never give up. Get off the couch and fight against them today or be prepared to fight for your very life come 20 years from now.
What an idiot.
GS beat thanks to the fed loaning them money through the TARP program, thats the only reason why they beat estimates, aside from that keeping rates near 0% is the only way for the banks to survive. The banks are going to correct once again probably losing anywhere between 25-50% of their value when the commercial real estate markets DROPS.
"The problems facing commercial real estate are severe and will likely take many years to resolve," Deutsche Bank analyst Richard Parkus told the Joint Economic Committee of Congress this month. He said the biggest losses are likely to come from banks' $550 billion of construction loans, such as loans to homebuilders.
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