Goldman Says Buy Puts Because U.S. Stocks May Resume Retreat

LMFAO

 

she's hot!!

 

Goldman Sachs Group Inc., which took $10 billion from the U.S. Treasury in October, would like to pay back the money from the so-called Troubled Asset Relief Program, or TARP, said David Viniar, the firm’s chief financial officer.

“It would send a very good signal” if the firm could repay the money, he said. The firm would only do so if it got “the blessing” of the Treasury and Federal Reserve, he said at a Credit Suisse conference in Naples, Florida today.

Under current rules, Goldman and other firms that received money under TARP are required to raise common or preferred equity to replace the government funds, Viniar said. The company will consider raising money “if the markets are good,” he said.

The government investment “is not really restricting the way we do business,” Viniar said.

Goldman will also be “very cautious” about considering any acquisitions because there’s a longer record of unsuccessful deals in the financial services industry than successful ones, Viniar said. He said the firm is likely to maintain its current business of focusing on corporate and institutional clients rather than entering the retail business.

“I would not pick up the Wall Street Journal every morning looking for the big Goldman Sachs acquisition because I think you will be disappointed,” he said. “We don’t really like or know the retail business and I don’t expect that to change too much.”

Now, their call makes sense

 

The stock market's fall Friday had the S&P 500 Index near its bear-market low as companies listed on the broad-market index engaged in another record-breaking quarter of slashed dividends.
....

Dividend reductions within the S&P 500 in the fourth quarter of 2008 came to a record $15.9 billion, according to Howard Silverblatt, senior index analyst at Standard & Poor's.
...

A $60 estimate for 2009, multiplied by 12.5 times, yields a 750 target on the S&P, which is "extremely fairly valued," said Hogan.

Greenhaus instead opted to use an 11 times multiple in light of a more disruptive-than-usual economic contraction, saying $60 times his now-reduced multiple puts the S&P's "fair value" at 660, assuming the multiple and price target hold.

 

You are sadly mistaken.

Abby Joseph Cohen is not the the Chief U.S. Investment Strategist at Goldman, and has not been in that position for nearly a year now.

That position is currently held by David Kostin.

 

Good thing you read the chart where the dates were from 2000 then, huh?!

I think bylow was stating that these people have no insight, and even less accountability.

 

What is the point of buying put options if you can just short the underlying or get rid of your length?

 

get out your decoder ring and learn to interpret the actual message in the tea leaves...

Couldn't have asked for a better fade/top call, much less paid for it.



http://www.nytimes.com/2008/05/21/business/21oil.html

 

I would agree 100%

But let's fact it, this tactic is used by almost all of the big wall street investment houses . . . the chief market strategist is a marketing "tool." Plain and simple.

But given all of the media exposure, you would have thought that Goldman might actually choose a woman that had some looks, as opposed to Abby.

Unreal.