I have a friend at UBS who was saying to me the other day that GS has screwed up a bunch of equity IPOs lately. Their bids are coming in below market on their roadshows, but it's only happening to GS. Don't know if that's affecting their stock, but if they get a short-term rep for having bad luck on drawing interest on offerings, that could hurt their IB biz.
Look at LAZ and WMG. There may be one or two that I'm forgetting but they don't appear to be on the side of the investors with these filings. They're throwing garbage out there and nobody's buying. LAZ is still way overvalued versus peers. WMG is a joke.
Agreed. Looks like an article just appeared on WSJ.com and they are citing GS's earnings shortfall in part to their i-banking biz.
If you think you are the ONLY ones having trouble trading this market, think again.. And to fxspeculator, no one is really manipulating the market. The market is too big. If there was someone doing the manipulation, then we'll probably never hear about it. And GS is just a middle man broker. Yes, they do prop trading. But it ain't easy as it seems. Even the big boys are suffering... ========================= Goldman Sachs Earnings Fall in Second Quarter on Weak Investment Banking, Trading Results NEW YORK (AP) -- Wall Street firm Goldman Sachs Group Inc. on Thursday reported a sharp drop in second-quarter earnings as investment banking and trading revenues fell. Profits came in below analysts' estimates. Chairman and Chief Executive Officer Henry M. Paulson Jr. blamed tough market conditions. The firm's competitors were less affected by the difficult trading environment. On Wednesday, Bear Stearns Cos. Inc. reported a 5 percent increase in second-quarter earnings on the strength of its institutional stock trading business. Lehman Brothers Holdings Inc. reported similarly strong earnings a day earlier. Goldman Sachs said that net income for the three months ended May 27 totaled $865 million, or $1.71 a share, down 27 percent from $1.19 billion, or $2.31 a share, a year earlier. Net revenue for the quarter totaled $4.81 billion, down 13 percent from $5.51 billion a year earlier. Analysts surveyed by Thomson Financial had projected second-quarter earnings of $1.87 a share on $4.96 billion in revenue. The second-quarter results reflected drops in revenue in both the investment banking and trading divisions. Net revenues in investment banking totaled $815 million, a 14 percent drop from the $953 million reported in the year-earlier quarter. Revenues from trading and principal investments were $2.81 billion, down 22 percent from $3.63 billion a year earlier. Revenues rose in 27 percent in asset management and securities services, totaling $1.18 billion in the second quarter compared with $931 million a year earlier. In a statement accompanying the report, Paulson said: "Market conditions in the second quarter were more challenging. However, the economic outlook continues to be favorable, and our client franchise remains broad and deep, and we retain our leadership position in critical businesses." The company said it ranked No. 1 in global mergers and acquisitions and in initial public offerings. It said assets under management rose 18 percent from a year earlier to a record $490 billion. Net income for the first six months of the year was $2.38 billion, or $4.65 a share, a drop of 4 percent from profits of $2.48 billion, or $4.81 a share, in the second quarter of 2004. Revenue for the six months ending May 27 were $11.21 billion, down 2 percent from $11.44 billion in 2004. www.gs.com
I have been having my troubles as well as anyone, in fact I think I am going to stop, go to cash and sit on the sidelines for a bit. I understand and appreciate different points of view when investing / trading like the market is forward discounting etc...but when you have a company like GS that comes in with what should be concieved as horrific earnings, MWD with their problems and the market is buying these I must be missing something...who knows maybe it is my chart reading, research..whatever ...All I do know is this is starting to become a guessing game and definitely loosing its fun side so time to take a break.
buy the rumor sell the news? I mean if my friend knew GS's deals were bad, and he doesn't care anything about their stock, how much more did the competing i-bank trading desks know that GS was going to come in poorly and accordingly positioned themselves ahead of time....