Says who? An anonymous internet poster that doesn't even trade for a living? I'd say that Miss Whitney has a pretty decent track record . . . much better than you!
a nice way to fuck the shorts and now the long just before earning,s Let see what happens in the last hour of trading
im sure meredith will be happy to do some work for goldman with her new consulting company. call this a free introductory hummer compliments of Meredith.Brilliant.
Leave it to the idiots of ET to not understand her "call", which I might say is the first bullish call that she has issued in her new shop. She's still bearish on the sector, but she's very bullish on debt issuance ( which states and munis and everyone and their brother will be generating the next couple of years ). Goldman will be a BIG player ( if not the biggest player ) in this sector. Duh.
Meredith on Goldman - re-redacted Posted by Paul Murphy on Jul 13 17:13. Comment. Finally⦠(H/T GP) Earlier on Monday the media were fed an expurgated version of Meredith Whitneyâs âbuyâ recommendation on Goldman Sachs â issued ahead of the investment bankâs Q2s on Tuesday. All we got was news that MWAG saw the stock as attractive in a bear market, More⦠Finally⦠(H/T GP) Earlier on Monday the media were fed an expurgated version of Meredith Whitneyâs âbuyâ recommendation on Goldman Sachs â issued ahead of the investment bankâs Q2s on Tuesday. All we got was news that MWAG saw the stock as attractive in a bear market, and that sheâd slapped a $186 price target on the paper. Helpfully, full versions of the 24 page report are now circulating. So we can report that Ms Whitneyâs basic premise is that America - at a federal, state and local government level - needs to issue so much debt that Goldman simply canât avoid profiting from this âtsunamiâ of issuance. Says Whitney: To be clear, our reasons for liking GS stock today are drastically different than any we have had recommending the stock on and off over the past decade. In the past, GS shares were a great play on equity markets and expansive global GDP. While that may still hold true down the line, our thesis today is that we expect GS to be the key competitor in some of the most unpredictable markets: government, corporate and municipal debt. Other key points: What we know: based upon our maturity/debt roll analysis, US corporate debt issuance should be at least 60% of the issuance of the past three years, or $1.9 trillion. There are at least 3 key players out of the market, so the absolute volumes captured by GS will at least be higher. What we know: sovereign and municipal debt markets are poised to grow upwards of 20% over the next 18 months. Similarly, there are at least 3 key players out of the market, so the absolute volumes captured by GS will at least be higher. What we know: associated/linked products with the previously stated flow products should contribute at least 20 bps to revenues, and that may be highly conservative. What we donât know: we are dubious to the sustainability of the equity underwriting calendar. After all, most of the deals have been recaps of financials. Importantly, an equity revival is not central to our positive thesis. What we are pretty sure about: GS has high relative capital levels that we suspect it will ânormalizeâ through stock buybacks over the next several quarters. Such efforts could return GS to pre-capital raise share count levels by late 2010. We are raising our 2Q09 estimate to $4.65 from $2.76 and vs consensus of $3.48. Our FY2009 estimate goes to $16.59 from $10.80 and vs consensus of $13.20. Our FY2010 estimate goes to $19.65 from $10.80 and vs consensus of $14.44. Our newly published FY2011 estimate is $22.10 vs consensus of $16.75. GS paid back TARP capital on June 17th in the first group of banks to do so. As a result of the transaction, GS expects to incur a 1-time ~$425 million charge in 2Q09. Other impacts to EPS include write downs from CVA/DVA adjustments and higher share count as a result of a common equity raise in 2Q09, as well as the elimination of TARP preferred dividends in future quarters. Hereâs what we used to call a ârag-outâ in old media parlance⦠http://ftalphaville.ft.com/blog/2009/07/13/61716/meredith-on-goldman-re-redacted/