Goldman Sach’s Heading Lower
Make no mistake, I love Goldman Sachs (GS), but the entire industry is in a funk. I was expecting the stock to bottom out at $190, but yesterday’s close and the mortgage hedge fund stink created by Bear Stearns tells me that the stock is headed to $160. I cancelled my buy orders at $190 last week and will be looking to buy lower in the $160’s. That being said, it is possible that the stock won’t get there – it really shouldn’t considering how good this company is and all the money it will bring in from the M&A boom we are in the middle of. But the market doesn’t always act on valuation and at 8 times earnings, valuation is cheap!
– Faisal Laljee
Full Disclosure: I do not own GS but my position can change anytime without notice
