The populist uprising against Goldman Sachs (NYSE:GS) has done little to deter the bullish attitude of investors toward the company, and they continue to pour money into the financial institution, as confidence they’ll continue to excel is strong.
This is one important thing to keep in mind for investors and those watching the media circus surrounding Goldman Sachs and some other banks. While politicians and the media love to gain points through making companies look bad, at the same time you must work through the clutter to see what is really going on. And when people and institutions do that with Goldman Sachs, they obviously like what they see.
Most analysts look for a strong performance this year by Goldman, with estimates they’ll earn $18.46 a share in 2010 and increase to $20.46 a share in 2011. At this time the shares in Goldman are trading at 9 times 2010 earnings and 8.5 times 2011 earnings.
Legendary investor Warren Buffett seems to concur with this assessment with his actions, as he plowed a lot of money into the company during the worst part of the recession, and I’m sure is still looking for dips to buy in.
That’s the secret with Goldman and others of course, to buy when they’re priced below what they’re really worth. Again, that’s why we must look past the clutter and focus on the underlying fundamentals of the business of the company.
For example, Warren Buffett knew the media coverage of Goldman was largely hysterics and would pass. It’s one thing to get the blame for what’s happening in difficult times, and another to really be a poorly run company or one that is extremely shady in its dealings. Goldman is neither, contrary to the silly and mostly unprovable reports made about them.
As long as a company has negative media coverage that is more venting than based on facts and real shady dealings, it eventually passes as the news cycle changes. And even though the recession has been a long news cycle because it has been long itself, Goldman is starting to be neglected more as other stories emerge.
This is why when things are negative but not dangerous to the survival of a quality company, it’s a great buying opportunity. Goldman has been all of that for quite a while.
This article (Investors Continue to be Bullish on Goldman Sachs (NYSE:GS)) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
The big banks are enjoying a good week for IPOs, as almost all of them were involved with two ocean shipping companies – Baltic Trading and Crude Carriers, and also health sciences company Aveo Pharmaceuticals, Bank of America (NYSE:BAC) and Wells Fargo Corp. (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM) and Morgan Stanley (NYSE:MS) all partook in the management of the deals for one or the other.
Cruder Carriers just went public, while Baltic Trading went public earlier this week. But the idea they felt it was a good time to take the chance may be a good sign for the giant financial institutions to generate some significant revenue and profits if other companies continue to follow in their footsteps.
One thing everyone is watching are so far the IPOs this week aren’t performing that strongly, and have pulled back or barely broke even, depending on when you check up on their share price. That could have a negative impact on other IPOs if they continue to perform in lackluster ways. That would indicate the market isn’t quite ready to take on new business, and aren’t convinced the economy has turned around in a manner which can sustain going public at this time.
While shipping is a good long-term play as far as those two companies go, in the short term they will probably be slow moving stocks until business begins to really kick in again.
The same will probably be true of Aveo, as a pharmaceutical is always cyclical and branding them takes a long time.
Taking into consideration other recent initial public offerings, and you don’t get a lot to rejoice about if you’re the big banks, but there does seem to be more consistency in the business, and the market has pretty much factored in the poor economic conditions, which the share prices of the new offerings, for the most part, all reflect.
If those going public understand this, they should continue to undertake the process for the benefit of all those involved.
Managing the Crude Carriers IPO was Bank of America and Wells Fargo Corp and UBS, while JPMorgan Chase & Co. and Morgan Stanley handled the Aveo IPO.
This article (IPO Market Hot This Week for Bank of America (NYSE:BAC) and Wells Fargo Corp. (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM) and Morgan Stanley (NYSE:MS)) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Posted To: MND NewsWire
USDA Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. There is no required down payment. The lender must determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt. John Rodgers called my attention to the following bulletin released by the USDA: This message is to notify you that program funding for the Single Family Housing Guaranteed Loan Program will likely be exhausted by the end of April, 2010 . Once funding is exhausted, the Agency will not issue Conditional Commitments “subject to receipt of appropriated funds. ” This...(read more)