What To Expect?
Sandler O’Neil analyst Jeffery Harte was Fast Money’s guest on Monday. He slashed his 4th qtr. estimate on Goldman to a worse-than-consensus $3.78 a share loss.
The widely-followed analyst cited greater-then-expected asset writedowns and flat-line investment banking activity levels, not to mention the collapse in global equities.
Although that sounds bearish, you might be surprised to hear that Harte tells Fast Money he has a “Buy” on the stock.
“Although we’re in a tough spot in the cycle, I would not go so far as to say Goldman is in trouble.”
Harte thinks when the market turns so will Goldman’s fortunes. “Goldman Sachs will continue to generate revenues as they always have. Investment banking and underwriting M&A will still be there.”
What’s the Bottom Line? To say Goldman is no longer a viable entity I think is the wrong thing, concludes Harte. Looking out a year or 18 months I think you’ll be very happy owning Goldman Sachs, I’m just not sure 1 month from now.
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Trader disclosure: On Dec. 15th, 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 (MSFT), (WMT), (SDS), (MCD); Najarian Owns (FCX), (RDC); Najarian Owns (BMY) Calls; Najarian Owns (NUE) And Is Short (NUE) Calls; Najarian Owns (UYG) And Is Short (UYG) Calls; Finerman's Firm Owns (AET), (DSX), (MSFT), (DVN), (APC); Finerman's Firm Is Short (VNO), (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (USO); Seygem Asset Management Owns (FXI); Seymour Owns (AAPL), (BAC), (F), (MER), (TSL), (CCJ); Seymour Owns Shares Of Uranium One, Inc.
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Jeffrey Harte is senior analyst with Sandler O'Neill
Sandler O'Neill Advised Clients In Deals Involving (BAC) And (JPM)
Sandler O'Neill Recvd. Inv. Bank. Comp. From (BAC), (C) In Past 12 Mos.
Sandler O'Neill Expects To Receive or Seek Inv. Bank. Comp. From (BAC), (JPM), (C) In Next 3 Mos.
(BAC), (C), (JPM), (MER), (MS) Are Clients Of Sandler O'Neill
Sandler O'Neill Was A Manager Or Co-Manager Of A Public Offering for (C) In Past 12 Mos.
Sandler O'Neill Has Received Non-Inv. Bank. Comp. From (C), (JPM), (MER), (BAC)
(GS) Is A Non-Inv. Bank. Client Of Sandler O'Neill
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