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Goldman Sachs Matches JPM In Raising GE Price Target, Oddly Does Not Cite "Numb" Investors As Catalyst
The game of leapfrog upgrades by the Wall Street Cassandras is on. After yesterday's upgrade by JP Morgan, based on the premise for a comfortably numb investor who will gladly throw his money into the upgrade napalm pit, predicted a $17 stock price for GE, Goldman, as expected, outdid itself and raised its own target from $15 to $18. Keep in mind, this is coming from the same analyst who used remarks by Barney Frank to justify a move from Neutral to a Buy a month ago. At this point the clutching at straws is becoming funnier than a Lewis Black on 10 red bulls and 3 eight balls stand up routine. If only Goldman's analysts were as funny, or were permitted to use the same colorful language that their clients use when describing the tactics out of 85 Broad. However, the language they do use is entertaining nonetheless, and with phrases such as "as the economic recovery blossoms" one has to have a keen sense for sarcasm and tongue in cheek humor to appreciate the full insight of the Goldman report.
From the report:
GE Capital risk appears manageable while Industrial continues to modestly outperform and valuation risk premium should wane as the economic recovery blossoms. We reiterate our Buy rating on GE shares and are encouraged by resilient performance of the company’s Industrial portfolio in the downturn driven by strong aftermarket/ services as well as higher preprovision GECS earnings in 2Q and credit losses that are tracking in line with expectations. There does not appear to be legislative support for regulatory reform that would require a dilutive separation of GE Industrial and GE Capital and GECS funding is complete for 2009 and nearly so for 2010. Moderating US consumer credit losses are also positive. While uncertainties remain, including reserve adequacy, commercial real estate losses, and longer-term capital requirements, we believe sentiment is overly negative and expect investor focus to shift to the upside potential in a normalized environment as the economy and credit markets continue to recover.
GE Industrial performance has been solid and 2009 cost cutting could drive upside in 2010. GE's segment Industrial profit has exceeded our estimates for the past two quarters, offset by higher restructuring spending that should improve cost performance in 2010. Strong mix of higher margin services businesses and resilient pricing of product coming out of the equipment backlog have been key drivers. As a result, we are raising our 2010/2011 GE Industrial EPS estimates to $0.77/$0.90 from $0.70/$0.80 on better margin performance across the portfolio and a shallower trough in Aviation and Wind equipment markets.
Yawner, however should be sufficient for quant momos to take the headline and run the stock up another 30-40 cents. And, as history will always have it, the real fun is in the report disclosures, where one finds this gem:
Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and our proprietary trading desks that reflect opinions that are contrary to the opinions expressed in this research. Our asset management area, our proprietary trading desks and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this research.
No commentary needed. Or maybe one: Jeff Immelt is on the New York Fed Board of Directors.
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What BS. And the market conveniently has a parabolic blowoff right after the open because DXY dropped back below 77. The media are also referring to the weaker dollar as a "good thing" in headlines this morning.
Once again, it was Nasdaq to the rescue! Is that index even easier to manipulate than the other two? It seems to lead upward and downward movements in the market.
Nasdaq futures are the best for pumping, especially in a situation like this morning's open where the S&P wasn't looking to happy.
Pump the Naz futures with a few thousand contracts, the S&P swings and the Dow has to follow.
As I understand the game, when the buy ratings come out, this is the signal to sell. The only ones buying are the dumb money or the so called retail investor.
AIG just berzerked up $3
Duh. Haven't you been listening? Money is coming back into the market. Yesterday was just a rest day.
But seriously, I can't wait for the same old midday volume drop(which encompasses the middle 5.5 hours of the trading day) and the indices moving in lockstep. I don't know what I would do without it.
my AIG "all in" at 55.90 per share will be blossoming shortly.
gonna tap the HELOC full out and put it all on c, fnm, fre.
i so wish that FHA would go public...are ya listening lloyd? that would be a force for good.
Only thing I can think of is that a breaking of the next technical level on the DXY will start the next leg up for gold...maybe the smart money doesn't think a dollar tankage will occur just yet. Could be an ill omen for equities in the short term.
Love it! Thanks Andy.
I've never been big on gold.....seems that for the past 20 yrs or so, every time there are economic problems the "gold to the moon" cry rings out....never seems to go to the moon from where i sit.
i don't see the dollar crashing much more....yet. i'm in the camp that the shiit will hit the fan soon and the dollar will have at least one last chance as will treasuries.
I'm usually wrong though, lol!
Zerged up. Maybe all the dollars that are used to settle liquidation are getting dumped into bank stocks?
kekekekekeke
They are all part of the same gang now, so no surprise.
Nasdaq 100 is closing in on the entire bear market down trend line! Amazing.
terrible volume on things like RIMM and TRIN about to punch the dopes on the nose here
Funny, every time I see the stock market spike higher and look for a reason, I just type in DXY <curncy> GIP, and Yup, dollar getting tanked again.
76.85 DXY!! Danger, Benny, danger!!!
That's a good sign for trade. There will be an even brisker trade of dollars for things that are worth something. We are just at the new cars will hold value better than the dollar point. Having past the guns and bullets stage. Next we'll move onto health and drugs. Then it's blue jeans and green bananas.
http://www.youtube.com/watch?v=9N7LIsEZbZk&feature=related
Can't be scared of spiders at that point. Banana picking is a risky business.
Dollar/Yen looks like it may say hello to 87 again, perhaps even 85!
FTSE through 5000 and it's all good, apparently.
Hey guys, this is more up your alley than mine: Physicists quantify that less than 100 people/corporations control 80% of the world's economy: http://arxiv.org/PS_cache/arxiv/pdf/0902/0902.0878v2.pdf
- Phil (PSW)
This is the coin Goldman Sachs is using to pay off GE so that Jeff Immelt will order CNBC to say nice things about Goldman: PR bullshit.
Boy! Those Goldman boys are SMART....
It's good ROI, CNBC is a very cheap whore.
Where have you been. Last week, CNBC did three separate stories on how GS is soo misunderstood and teh victim of bad PR. The haven't played the anti-Semitic card yet.
Yup... looks like they'll be spending a sh%tload on putting out good PR soon. They shoulda 'hired' Tyler when they had a chance. Perhaps that's what the Salmon piece was about.
As for the card... let's hope it never gets there. The posts here have been very respectful on the whole.
Wakey wakey guys...
It's called 'Squid pro quo' these days!
zerohead...very, very clever!
Been looking for a place to lay that egg for a week!
THIS WILL BE THE ONLY WAY FOR THESE GUYS TO GET THE MESSAGE
And So It Begins (Debtor's Revolt)
http://market-ticker.denninger.net/archives/1419-And-So-It-Begins-Debtor...
she sounds desperate and she thinks Ken Lay loaned her the money and jacked her rate.
Kind of hard to not laugh at...which is what BAC will do to her.
I don't think she particularly gives two flying f-bombs if you or BAC laugh at her.
true dat.
There are a lot of folks out there that get the sense they are screwed no matter what they do, so going out with some dignity is to be applauded. She is just going public with what a lot of people are doing in private...stickin it to the man!
She should get some ZH love next to wallstreetpro2 ... America is speaking, are you listening?
How is gold not at $1030 or more?
fear of tankage most likely.
Once it gets a move on it will be unstoppable like oil was last year.
The fun starts when the market starts blistering to the downside WITH the dollar and gold starts heading for par with the dow.
That will be cool
The Beijing Put
and don't forget, China is no longer eating losses from derivatives contracts. You can't take gold down unless you have someone to lay the loss on.
I agree with you, I am not a big "gold bug" myself, I mostly turn my increasingly useless dollars into commodities, but once the real run from the dollar starts, it will turn into a panic pretty quickly.
If I was holding a big stash of USD I would be pretty nervous right now.
So we're back to weak dollar is good for exports and all that. And somehow the largest exporter in the world, Germany, also benefits from a stronger Euro, so the DAX is soaring.
Correct me if I'm wrong, but in the twenty five years it took the yen to rise from 300 to 90, the US ran a trade deficit with Japan every single one of those years.
And in closing, Bernanke is an asshole who would do the country a great service if he went looking for Robert Novak.
Crime pays baby...don't even worry about getting caught...just steal big...this way there's enough for EVERYBODY! WHAT A COUNTRY!!
FGG Madoff Settlement Is Less Than One Fifth Of What Partner Piedrahita Made In One Year
http://www.businessinsider.com/john-carney-fgg-settlement-is-less-than-o...
DXY just taken down to a new low--76.80. market still not really reacting all that much. Something has to give here, eh?
Do mushrooms blossom?
Do mushrooms blossom?
Rather exciting... shame i have already lost my shirt
EURUSD approaching key 61.8% Fibonacci retracement at 1.4635.
Of course, the Nasdaq is dragging the Dow+S&P up with it...it strikes me that the charts for DXY the past couple days(at least while the U.S. markets are open) reflect the downward pattern that should have played out on so many different days during the rally in the broader market, but for the stick saves by our favorite players.
Moment of truth for the Nasdaq 100. Up against down trend line of bear market and the Bear Stearns low around 1670. How long can you keep buying Amazon on 60 times earnings which wages are deflating and credit is contract at a record pace????
Let me guess...Beige Book will state, "actions the Fed has taken continue to bear fruit and we see more and more reasons for optimism going forward. While the job is not yet finished and circumstances still demand vigilence (i.e., banks will continue to get free money), all sectors from housing to manufacturing to the financial sector look to be on the mend. Unemployment, while worrisome, is expected to improve as the full measure of the Fed's action take effect."
Dow, S&P and Nasdaq all close up 3%.
http://www.ft.com/cms/s/0/ffb670be-9d33-11de-9f4a-00144feabdc0.html
what's the pimp machine's minimum to qualify for frontrunner advice?
the price of a hereditary baronetcy in England in the 17thC was the cost of upkeep of 200 King's soldiers for 3 years. how much today? ... comparisons please ...
76.8
Interpretation, in their own words:
"Our salespeople... may provide oral... trading... to our clients."
they short squeezed up the markets before. now the upgrade trick. all a con game!!
Let's just see how this looks...