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Thread: How much did Goldman make off of this "mistake?"

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  1. #1
    crfceo is offline
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    How much did Goldman make off of this "mistake?"

    Reuters
    Goldman cuts U.S. financials, admits goofed on upgrade
    Monday June 23, 12:49 pm ET


    (Reuters) - Goldman Sachs & Co strategists urged U.S. stock investors to "underweight" the nation's financial and consumer discretionary sectors, admitting that it was mistaken when it upgraded both sectors just seven weeks earlier.

    The downgrades sparked selling in stocks in both sectors, as investors feared that weakening consumer demand and deterioration in the credit markets would weigh on profitability.

    "We boosted our consumer discretionary and financials weights in May on the belief the sectors would benefit from bank recapitalizations and fiscal stimulus," Goldman strategists led by David Kostin wrote. "Our thesis was clearly wrong in hindsight."

    Goldman had previously urged investors to overweight consumer discretionary stocks, and maintain a neutral weight in financials....


    continued, read more here:

    http://biz.yahoo.com/rb/080623/finan...h_goldman.html

  2. #2
    zcurzan is offline
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    Here's hoping their downgrade of satellite radio plays out the same way. They already as going well against the current when it comes to the estimates of the other analysts.

  3. #3
    cmule314 is offline
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    Smile

    Well, as stated on CNBC today by one of their analysts, that the bonuses that have been traditionally awarded to some of the largest Brokerages much like that asshole Goldman ace as previously stated. They all would most probably end up with a pitance of what they received the previous year.

  4. #4
    zcurzan is offline
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    Sirius Satellite Radio is Seriously Undervalued

    Sirius' (SIRI) stock price started last week with at a fast sprint and traded as high as $3.08 in pre market Monday on news of the FCC getting behind the merger, but tripped and fell by week's end and closed at $1.99 a share after Goldman reiterated its sell rating. Although selling pressure ensued after the Goldman rating, I believe Goldman will regret its call much like it did with its financial sector call....

  5. #5
    homer985 is offline
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    Quote Originally Posted by zcurzan View Post
    Although selling pressure ensued after the Goldman rating, I believe Goldman will regret its call much like it did with its financial sector call....
    FWIW, I've had more than one well placed market person tell me in the last week that GS was short the sub-prime market. So while they were selling their mortgages at retail, they were shorting it on the other end. These people tell me that GS has been bringing in "massive trading dollars" from doing it. Also told me that they've been shorting Gold through derivative contracts too, while setting higher targets.

    It would not surprise many to hear that GS was short XM and Sirius. There are many -- much larger investors than any of us -- that have been keeping an eye on this.

    Chinese Wall? LOL, yeah right.

    Of all people, I don't mean to come off sounding like a conspiratorialist -- but with the prior history at GS and what we've seen as of late, it makes you wonder.

    ---

  6. #6
    zcurzan is offline
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    So going with your hypothetical set up, how do you see this all playing out?

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