http://expat21.files.wordpress.com/2009/04/atlas.jpg

Wednesday, June 30, 2010

Taking advantage of emotions

I made a previous post about how oil stocks were undervalued because of BP's oil disaster, but there is another stock that is substantially undervalued because of an emotional agenda by the public against it. If I told you that there was a stock on the market with consistently high earnings year after year, had a EPS of $24/share, and P/E multiple of 5.5x what would you do? The obvious answer is to buy it. The stock just described is Goldman Sachs. The enemy of all American taxpayers, the SEC, and every other investment bank on the street. Although the company has had its fare share of lawsuits and bad press, the negative public perception of this company has not changed its earnings. In the last quarter alone Goldman traders made money every single day during that time period, something almost unimagineable. There is some risk to buying Goldman stock, but after seeing the stock's recent slide over the past three months the stock is seriously underpriced. The time to but this profiting giant is now because these consistent profits will not go unnoticed for much longer.

No comments:

Post a Comment