Good Signs for Goldman Sachs (GS)

03/24/2010 12:01 am EST


While the bombastic rhetoric that surrounds the banks gets louder each day, nothing compares to the vociferous negative tone that accompanies Goldman Sachs (GS). The government may use them as a pawn, but there is no denying the success. Long held as the gold standard of trading and investment banking, the venerable firm has come under high scrutiny for the past 20 months. AIG, brokers, compensation, privileged information—perhaps they have broken some rules. 

Whether they deserve it or not, the company is about results; and they produce like the 800-pound gorilla in the room.  It's these results that are the envy of its peers and separate the firm from the rest. They own the biggest calls on the markets, one example being Baidu (BIDU) (targeted 550 on the stock in January). 

They also are biggest commodity traders around, and derivatives generally are their highest money earners. Couple that with their fixed income trading underwriting division, which is second to none, and you have the best of the breed.  Even with all the positives, the company still gets no respect or is just slammed mercilessly. 

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Well, it's time for a casting call for GS, as this is about ready to head back to the 200 level, and fast. Sentiment is still bearish even though it's nearly at the January highs, and the October levels of 192 are just 10% away, which this stock can do easily in a month.

By Bob Lang of

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