GS, Buy or Stay Away?

Quote from traderNik:

Interesting. Here's an honest question, because I can't come up with a good example myself. Can either of you name an iBank that went through something like this where they get publicly pilloried with Senate hearings and the whole nine yards, end up paying a slap-on-the-wrist fine which wouldn't even register but eventually became a third class player because of the kind of reputational hit that you describe?
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Salomon. Went from top dog to bit player in a few years due to reputational problems. Buffett was in there too, he's the main reason they didn't go from top dog to insolvent.
 
Quote from Ghost of Cutten:
Salomon. Went from top dog to bit player in a few years due to reputational problems. Buffett was in there too, he's the main reason they didn't go from top dog to insolvent.
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Ok, A Andersen and Salomon. I wasn't aware that Salomon's rep had taken that much of a hit. Thanks for the responses.

Just read the Buffet bio (the shorter one by Lowenstein, not that 1000 page behemoth) and it was interesting to read about the moves which surrounded his Salomon rescue.

I agree with those who say that from a trader's perspective, the percentage play long is to wait for a deeper selloff, with some sort of higher volume blowout day.
 
Quote from No.Heat:

Let me give you some advice assuming no daytrades.

It's one thing to buy a strong company when the whole market is at oversold levels.

It's another thing, to buy a company under serious accusation by the SEC when the market just finished doing a new 52 high.

GS right now is too speculative, forget about it, whether it goes back to 200+ or crashes down to 0, just forget about it, and in the future, don't let hindsight trick you into thinking you should have done this or that, this could misled you into thinking such trade was safe, when it's not.

There are far better and much safer trades out there.

This one spells uncertainty.

Best of luck to you.
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This.

Good advice by the way; I'm going to write this one down and post it on my wall
 
Quote from corbel:

This.

Good advice by the way; I'm going to write this one down and post it on my wall
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Agreed! That was a good post!

For those who use Vectorvest, they've been thumbs down on GS.(I know, VV has some cheesy ads, and some people like them, some don't, etc., but they were right on the call.)
 
Goldman’s plans appear to have sent city and state officials into giddy ecstasy. They quickly agreed to give the company a hundred and fifteen million dollars in tax breaks and cash grants to build the new tower. More singular still, state and local governments decided to give the firm another big subsidy by letting it use $1.65 billion in tax-exempt Liberty Bonds, intended to stimulate economic development after 9/11, to cover part of the building’s $2.1-billion cost. Last month, Goldman announced that it had made a profit of nearly three and a half billion dollars in the first quarter of this year—enough to have paid for the entire building, in cash, in a couple of months, without any help from taxpayers.

Read more: http://www.newyorker.com/arts/critics/skyline/2010/05/17/100517crsk_skyline_goldberger#ixzz0oKNkd3iB
 
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