Goldman upgrades...

Discussion in 'Stocks' started by ASusilovic, Feb 4, 2010.

  1. Goldman upgrades Janus to buy from neutral

    Goldman ups Franklin Resources to conviction buy
  2. spinn


    02-04-10 10:30 AM

    Market down more than 200 points shortly after open.
  3. GS may be "setting the stage" for some type of merger for those companies in the near future. :cool:
  4. Anyone done any backtesting on Goldman upgrades?
  5. I keep wishing Goldman recommends another GE long option position :)
  6. why do people still follow what GS upgrades or downgrades? They are bunch of financial hooligans, I been around for a while and I have seen many times GS upgraded a stock and a month later, they downgraded the very same stock, honestly, there was not any fundamental changes in those companies. I guess there are still stupid asses everywhere who trades following those upgrade and downgrade, man, wise up, there are all just bullshits....
  7. NoDoji


    ANALysts are a lagging indicator whose purpose is to serve their paying clients. The following dramatization is based on ACTUAL ANALYST EVENTS:

    11/30/09: Goldman Sachs upgrades X to Conviction Buy, saying steel prices have bottomed.

    1/5/10: Analyst clients: "Hey, nice job helping X run up! We're aware that AKS and STLD became profitable last year, and are expected to be profitable this year and are trading at a fraction of the price of X shares. We also realize that X hasn't posted a profit in a year and isn't expected to be profitable this year either. But you know we started buying in early July 2008 when it dropped from $194 to $149 and now have 10 million shares at an average price of $75. We're so close to break even and really need to dump this pig. Can you give it another good push?" Goldman Sachs: "We can't do any better than 'conviction buy', but we'll make a few calls and see what we can get going."

    1/8/10: J.P. Morgan raised its target on U.S. Steel (X) to $75 from $55.

    1/12/10: BofA Merrill upgrades US Steel (X) to buy from neutral. Hikes X target to $80 from $45.

    1/19/10: Deutsche Bank upgrades US Steel (X) to buy from hold. Firm also downgrades AK Steel (AKS) to hold from buy, citing lower margin potential vs peers, unlikelihood of a buyout in near term and rising Street sentiment.

    This final upgrade on 1/19 pushes X near its previous high, but it fails to reach it, leaving behind a (gasp!) lower high.

    1/20/10: X opens gapped down and closes even lower.

    1/20/10: Analyst clients (frantically): "You gotta do something, this is looking bad. You KNOW a lower high is the kiss of death. We were so close. Help!" Goldman Sachs: "OK, we'll try to dredge up a few more upgrades..."

    1/21/10: US Steel Raised To Buy From Neutral By Longbow > X

    1/21/10: X opens a few pennies ahead of the previous day's close, tries to rise and sells off rapidly into the close, losing 9% in one day.

    1/21/10: Analyst clients: "You #&%@ bastards! We dropping your services!"

    1/22/10: United States Steel Corp. Cut To Buy From Conviction Buy By Goldman Sachs (Translation: "Dump your shares as quickly as possible before earnings without inciting panic.")

    1/26/10: X opens gapped down 6% on (surprise) a much larger than expected loss and closes down nearly 6% more.

    1/27/10: U.S. Steel Cut To Neutral From Buy by Goldman Sachs > X

    To be continued...

    Here's a possible scenario based on typical analyst ratings:

    3/17/10: In an eerie moment of deja vu, US Steel (X) comes within pennies of its 52-week low of 16.66 and rapidly finds support as buyers come in on unusual volume.

    3/18/10: U.S. Steel Cut To Sell From Neutral by Goldman Sachs > X