Why Is The Street Ganging Up On Goldman?
Contrary to market speculation, Goldman Sachs is not pursuing an acquisition of Lehman Brothers, reflecting concerns that integrating two investment banks would be too disruptive, sources familiar with the situation tell us.
That’s hardly surprising to hear. Goldman appears to be struggling with troubles of its own. On Thursday a Keefe, Bruyette & Woods analyst cut her profit estimates on Goldman on expectations for lower equities trading revenue.
Only one day earlier Banc of America did much the same. In fact Deutsche Bank , JP Morgan ,Oppenheimer and about 10 other banks have all taken Goldman “out to the woodshed” ahead of earnings next Tuesday.
With the Street ganging up on Goldman is now the time to buy?
Goldman is the market’s security blanket, says Joe Terranova. If they have earnings south of $2 there will be a problem next week. But if they can come in after all the downgrades and perform well, it should restore investor confidence.
I'm concerned about Goldman too, adds Pete Najarian. They're very exposed to commodities.
We'll be watching.
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Trader disclosure: On Sept 12, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (WMT), (MSFT), (UUP); Macke Is Short (TM); Seymour Owns (AAPL), (F), (GM), (MER), (SHLD), (TSO); Seygem Asset Management Owns (EEM); Najarian Owns (AAPL) And (AAPL) Collar; Najarian Owns (GE) Put Spread; Najarian Owns (HOLX) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (NOK) And Is Short (NOK) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (TSO) Call Spread; Najarian Owns (XLF) And (XLF) Collar; Terranova Owns (AAPL),(RIMM), (GS), (VLO), (SA), (YHOO), (NOV), (POT), (EOG), (FCX), (X); Terranova Owns (AIG) Puts And Owns (AIG)
Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (BRE), (CNTY), (CNW), (CLB), (OFC), (DLM), (DRH), (DLR), (EPR), (ESS), (EXR), (AGM), (FL), (GBL), (GNET), (IGE), (LNET), (MAC), (OIIM), (PSPT), (DBC), (DBV), (SLB), (GWX), (SSYS), (SKT), (UA), (BIV), (VV), (BLV); Phoenix Investment Partners Owns More Than 1% Of Goldman Sachs Financial Square Fund - Money Market Fund; Phoenix Investment Partners Owns More Than 1% Of Seagate Technology Tax Refund Rights
Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
GE Is The Parent Company Of CNBC