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Stock of the Week-GS

GS - Goldman Sachs. Here's a beauty, Goldman Sachs. Trading around 163 off highs of 209. Goldman Sachs is a financial conglomerate. High next year's earnings are $21. If the economy improves (which it will ) Goldman will easily hit this target. Their predicted growth is 11% and double that number to get their p/e ratio in a sane market. I say sane market. Banks are usually trading a more than double their p/e for the stability and their ability to pay dividends, with that being said one intelligent investor could expect GS to be trading at 30 times earnings at some point in the future. When Goldman's earnings hit 21 x 30( their expected p/e ratio with no bull market factor ) Goldman will be trading at $600. With improving financials over the next couple years I think this is a modest number. Don't believe it? Time will tell. Ask Warren Buffet

who's getting a guaranteed 10% return from Goldman and has the ability to buy tons of shares at the $130 price. The shares have 5 year option to buy at that price. The Oracle of Omaha said it himself that he's believing that it's in his best interest to hold the shares over that 5 year period. It's at $164 and you can ride this all the way to $600. The question is will you? I know I will. Let's saddle up!

 

Last Updated (Wednesday, 30 December 2009 21:46)

 

Comments  

 
0 #2 Original 2010-01-23 04:36
Booyah Skidaddy

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+1 #1 Shawn 2009-12-24 15:03
Brilliant !! I will buy 1,000 shares.
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