Goldman Sachs back to its winning ways
The company was written off not once but twice in 2 years. Now its time in purgatory is over, and it's approaching the breakout level.
By Jim Cramer, TheStreet
I think it's is because:
- Financial regulation means almost nothing to Goldman. It hasn't had to change any really important practices.
- Goldman Sachs has no mortgage exposure like the other banks, because it really never got into that line of business.
- The company has raised cash at an absurdly low price and will now not have a liquidity crisis again unless someone goes in and steals the darned money.
- The bearish crowd seems to have decided to leave it alone for whatever reason.
Now, how about that last quarter? I thought it was amazing because it showed that the company had great core earnings power away from the proprietary trading desk and that it didn't need equity trading to make a lot of money. In the meantime, it was making far more money in corporate finance and mergers than anyone thought possible.
Plus, consider the massive fine it had to pay for its transgressions!
Goldman Sachs has been written off not once but twice during this period: first when it crashed to the $60s during the great 2008 liquidity crisis, and the second time when it was charged with crimes by the government.
It beat both.
Its time in purgatory is done. Without any fanfare it has now approached the breakout level. Without any push or support.
Who knows what will happen if someone actually gets behind the stock and pushes it!
At the time of publication, Cramer had no positions in stocks mentioned.
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