“This is the Goldman that I know,” the Mad Money host said. “This is the Goldman that makes money out of stone.”
Cramer pointed specifically to the $2.75 a share in earnings, excluding one-time items, Goldman reported, saying that was the number that counted. He was less concerned with the 78 cents a share in net income, which was a dramatic drop from $4.93 a share earned during the same period in 2009. And given the limited competition in this space, Cramer assumed that Goldman would rebound when business overall did.
He also said that many investors see this as a “trough” for the company, that they are waiting for analysts like Meredith Whitney, who have been bearish on the banks, to turn positive.
“And they want to be in ahead of that,” Cramer said.
In other earnings news, Cramer called Pepsico’s quarter “remarkable,” adding, “I don’t think it’s done going up.”
Finally, a new Royal Bank of Scotland research note had this to say about stocks: “The big turnover in the US economy will lead to dramatic turns down in valuations we suspect – and may finally destroy the world’s worst cult: the cult of equity, which has not basis in fact, or history, but yet seems universally accepted.”
Cramer, obviously a big proponent of stocks as a wealth-building tool, called the statement “the most stupid thing I have heard in a long time.”
“When I got in, stocks were at 1,300 on the Dow,” he said. “And, you know, it’s not a rounding error that they’re at 10,000.”
When this story published, Cramer's charitable trust owned Goldman Sachs.
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