Discussion in 'Commodity Futures' started by NoMoreOptions, Dec 18, 2003.
"They" made money, how?
i guess you gotta blame someone, eh?
btw, wtf do all of your signatures mean, and who is 'john' anyway???
Of course they made money! The own the largest specialist on the street, SLK and fired a large amount of their workforce. In addition send a large part of their IT development work to India.
Cut all your costs and you will show a profit!
Quote from NoMoreProfit:
Where the profit of Goldman Sucks come from?
"They" made money, how?
Anybody that has been in this business for more than a few years knows that Goldman has a huge Fixed Income Department much like Bear Stearns, and they also have a commodity and currency division. They are a PREMIER investment bank that is at the top of most big hedge-funds list for providing Prime Brokerage services for an array of trading activities.
Trust me, they aren't just SLK.
Take a look at any commodity chart this past quarter, be it oil, gold, beans, the currencies, etc. If you just think that Goldman is about equities, you are WRONG.
"Trading revenues in fixed-income and commodities businesses remained strong at Goldman, rising 29 percent on a sequential basis in the fiscal fourth quarter ended Nov. 28 and resulting in record profit at its FICC division, which includes currency trading as well as bonds and commodities."
"We continue to have a very good environment in fixed income, commodities and currency," said David Viniar, chief financial officer at Goldman.
Have you seen how well BS done this year? Man, it has been a great year for fixed income and especially FI derivatives.
GS had a tremendous long position in the Euro.
GS has the biggest balls on the street and have an incredibly well-diversified and entrenched revenue base. They are in the top 3 in every rev segment in which they operate -- SLK is small potatoes for GS.
True but the stock is richly priced, and the Street doesn't like trading revs to be a major source of income.
When I followed Bankers Trust in the 1990s it consistently beat the consensus, and had 25% ROE qtr to qtr, but only got a 7 multiple, becuase they made mint trading.
Fixed income is reigning supreme. Seems like 2003 was all about bonds and FX for these guys....
enron "did well" trading...for a while anyway.
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