Goldman Sachs Group, Inc. (The) (GS) research, news, and more from GeoInvesting

Company description

Thu, 27 Dec 2018 15:42:32 GMT

The Goldman Sachs Group, Inc. is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. The Company operates in four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment consists of financial advisory and underwriting. The Institutional Client Services segment makes markets and facilitates client transactions in fixed income, equity, currency and commodity products. The investing and lending activities, which are typically longer-term, include its investing and relationship lending activities across various asset classes, primarily debt securities and loans, public and private equity securities, infrastructure and real estate. The Investment Management segment provides investment and wealth advisory services.

Research

Wed, 16 Jan 2019 15:49:45 GMT

**Call To Action Update

On December 27, 2018, after stocks were hit hard on Christmas Eve and at the suggestion of one of our analysts, Chris Irons, we decided to take a very small and uncharacteristic (for us) speculative position in Goldman Sachs (NYSE:GS), which we put on by purchasing out of the money calls that expire in summer of 2019. The idea was brought to Chris’ attention by long time Geo Member and friend @Keubiko.

Today GS reported Q4 2018 results beating analyst estimates on both top and bottom line results. Shares were up 2.6% in pre-market trading and up 14% since our initial call to action.

We continue to maintain the small speculative position.

Call to Action

Thu, 27 Dec 2018 15:43:53 GMT

** Call To Action - Small Speculative Position in GS Calls

Yesterday morning, after the Christmas Eve trashing of stocks and at the suggestion of one of our analysts, Chris Irons, we decided to take a very small and uncharacteristic (for us) speculative position in Goldman Sachs Group, Inc. (The)(NYSE:GS), which we put on by purchasing calls that expire in summer of 2019. The idea was brought to Chris’ attention by long time Geo Member and friend @Keubiko.

The position is extremely small and is based on the the fact that GS’s price decline, which has been tied to the fall of the indices, has left it with a tangible book value that’s lower than it was during the worst part of the financial crisis in 2007/8. Surely we don’t see systemic risk in the same way there was a decade ago (or at all), and therefore we saw this valuation to be opportunistic to explore an otherwise uncharacteristic purchase.