SEC To Have “Significant” Announcement on Goldman at 4:45 pm

Shares of Goldie (GS) are up on speculation that they’ve reached an agreement with the Federales.
When the news first came out three months, I was not impressed with the SEC’s case. I felt that at most, Goldman would pay a fine.

Overall, I have to say that I’m not terribly impressed with the SEC’s case against Goldman Sachs (GS). Perhaps there’s more to it, but it seems pretty weak to me. My guess is that Goldman will eventually write a $200 million check to the feds, maybe less. To add some perspective, GS lost about $12 billion in market cap today. That could buy the New York Times (NYT) more than six times over.

The day the SEC’s case was announced, shares of Goldman plunged from $184.27 to $160.70. I got several emails asking if GS was a buy. I said no. Fortunately, I got that right and GS fell as low as $129.50 on July 1. The stock has bounced back and it’s up again today. The outlook for the stock will be a lot better once this case is out of the way.

Posted by on July 15th, 2010 at 3:42 pm


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