Tag Archives: Goldman Sachs

It`s expected to see a BIG drop in Goldman`s revenue

Goldman Sachs is founded by Marcus Goldman in 1869 in New York City. It`s an American multinational investment banking firm that engages in global investment banking, investment management, securities and other financial services primarily with institutional clients.

Goldman Sachs Group Inc is expected to report its fist-quarter results on Tuesday before the bell.

 

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Its expected to see a big drop for Goldman Sachs this time. According to analysts, the revenue will come in at $6,73 billion and thats much worse than last years $10,6 billion for the Wall Street company.

Earnings per share came in at $5,94 in the same period last year, but now it is expected to see a profit of «only» $2,45. Other banks and money makers have been warning investors to be prepared for disappointing results at Goldman`s first quarter earnings this time.

The stock peaked at about $233 in 2007 and shares of Goldman are still at about the same level as it was ten years ago. That`s much better than the other big Wall Street banks. Goldman looks more stable.

Goldmans shares are trading at $158,8 and the stock has been declining since June 2015, and Mr. Blankfeins options will probably be worthless when they expire in november this year. Is Blankfein doing a bad job?

Goldman`s book value has increased every year the last ten years. Despite a lot of challenges, the bank increase about five percent last year. The problem for the bank is that the business of investment banking is not a good business anymore. Banks are entering a new era.

Their annualized return on equity is set to be under 7% and less than half what it was last year. Banks need a 10% return on equity to cover their cost of capital and Goldman will probably not reach that level any time soon.

According to Reuters, Goldman is expected to earn $7,6 billion in any of the next four years, so it makes sence for the bank shares to trade at the bank`s current 10% discount to book value.

Along with JPMorgan, Goldman Sachs is one of the worst performers on Wall Street so far in 2016. The Fed raised its policy interest rate from a range of 0,00% to 0,25% to a range of $0,25 to 0,50% and that should be profitable for the banks. But we haven`t seen any sign of that yet.

 

sam

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Rally!

Yesterday, I was sitting in front of the TV…..eh…… in front of my computer, watching live streams with Chairman Ben Bernanke. He did not disappoint the markets. The DOW was up +1,84% and the S&P 500 was up +1,7%. What a rally!!!! Ho ho ho.

They are not going to taper now in December, but plan to start tapering in January next year. There was two good news yesterday: 1. The Fed will cut back it`s bond purchases by $10 billion, and 2. The interest rates could remain low even if unemployment drops below 6,5%. This is music in investors ears!

Gold went in the opposite direction and didn`t like the news from the Fed. Gold is now trading near the critical $1200 level. I have written about this critical level before, and this is the break even level for the mining companies.

The mining companies doesn`t earn money if the price goes below $1200. It will be very exiting to follow the gold price in the future. Watch out for this level and see if this level holds. The news yesterday was bearish for the gold, but bullish for the dollar.

A lot of investors and money makers have lost a lot of money in their gold investments since 2011 and that is because they didn`t recognize and adapt to the changing trend. We are in the same situation right now, where a lot of people don`t really know what is to come in 2014. Will we see a rally in gold?

As you can see from the gold chart, we are at a stage one basing phase. 150 and 200 moving averages is slowing down and start to go sideways. This will go on for about 6-12 months. So, now you know when to expect the gold bull market start again.

In this one phase stage, a market goes both up and down and it looks like it goes nowhere. Many people are getting frustrated and start to give up and others that is not in the market stops paying attention to the market. After a bear market, a stage one basing phase will follow and make a new way for a real bull market.

We have seen many bubbles like the internet bubble, housing bubble and the market crash in 2008. Now, it seems like a new bubble is on the way. The Fed are on the way to build a dangerous federal government debt bubble.

It can be avoided by reducing the Congress spending deficit. But in the budget deal last week, they increased the government spending. All this money printing have been a disaster for the U.S.

In Mars next year, we have seen a bull market lasting for five years. What do you think will happen to QE if the economy slows again? Goldman Sachs predict the domestic GDP growth to hit 3% next year (1,7% in 2013). I hope he has right. I look forward to 2014.

News today: Unemployment Claims at 8:30am, Existing Home Sales & Philly Fed Manufacturing Index at 10:00am.

Markets up

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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