Is this a good news or not? After getting $13B from the government thru AIG, you gotta make money, right?
One would think. I’m getting tired of companies moving around their scheduled earnings releases.
But it seems to be a fashionable thing to do these days.
I think it is mighty good news. Sure some of it is AIG, as a lot of their other units were down ~20%. But their FI group did well too. And paying back TARP money is cool in my book, then they can get on with doing whatever they want again. Issuing stock to do it is interesting however…
did they beat estimates?
Announcing a day ahead of schedule, Goldman Sachs (NYSE:GS) reported Q1 EPS of $3.39 per share, well ahead of consensus estimates of $1.39 per share. Revenue rose 13% year-over-year to $9.43 billion, topping consensus estimates of $7.09 billion. “Given the difficult market conditions, we are pleased with this quarter’s performance,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “Our results reflect the strength and diversity of our client franchise, the resilience of our business model and the dedication and focus of our people. We believe these attributes position the firm to continue to create value for our clients and actively fulfill our role in the capital markets.” Goldman also announced it was raising $5 billion in common equity in order to redeem TARP capital. The equity offering is scheduled to price in the morning. The market isn’t too receptive to the news. GS down 1.5% in AH. There must be something not to like.
Is Louisvillegrad still alive?
“The market isn’t too receptive to the news. GS down 1.5% in AH. There must be something not to like.” I think most of us figured that with Mark-to-Muppet in place, the bright eggs at GS could do even better. If they can’t even cook the books to the tune of a few bil, what’s the point?
My guess is it is the equity offering, what shareholder likes that dilution?
tvPM Wrote: ------------------------------------------------------- > My guess is it is the equity offering, what > shareholder likes that dilution? Yeah, but are they getting diluted if they’re replacing convertible securities with Equity? Shareholders got diluted a long time ago…
financials should get killed in the next couple of weeks… reason? equity offerings. goldman, the biggest, healthiest on the street is offering equity. what do you think the grossest, stinkiest companies are going to have to do? issue equity. maybe goldman released early to beat all of the other banks to the offering table. makes sense to me. you don’t think that the government wants all the banks to go to market after a 300% run-up in the stock price of some stocks. i.e. BAC and C. how high do they expect to get on the backs of government money? banks going to market would reignite my love for the government. at least they wouldn’t own the whole system anymore.
Something is wrong here. If they are really doing so well, they don’t need to repay TARP with offering. They should just wait it out for a year, then they will have that $5B in the pocket. Also, HSBC doesn’t need to sell their European REs for $4B after their recent $20B offering. That shows that the big boys don’t think it is over yet.
Looks like a nice strategy. Announce cooked earnings as early as possible to ride on the Wells Fargo wave, issue new equity at inflated prices, repay TARP.
Oh I see now. They just recently changed their fiscal year to end in Dec as oppose to Nov. So they don’t have to report their over $1B loss in Dec 08. No wonder they are the best in this business… “(b) On December 15, 2008, Group Inc.'s Board of Directors determined to change Group Inc.'s fiscal year end from the last Friday of November to the last Friday of December, beginning with fiscal 2009. Fiscal 2009 will begin on December 27, 2008 and will end on December 25, 2009. Information on the one-month transition period beginning on November 29, 2008 and ending on December 26, 2008 will be included in Group Inc.'s Quarterly Report on Form 10-Q for the three months ended March 27, 2009. Item 8.01 Other Events.”
ymc your a genious.
needhelp Wrote: ------------------------------------------------------- > ymc your a genious. At least you spelled “ymc” and “a” correctly. 50%
Im a genious to
LMAO. We need a your you’re educational post. BTW +1 for checking the footnote disclosures.
let bronzeman sachs pay back their TARP money so they can give the top 50 billion dollar bonuses… i’ll never own that company’s stock, when they pay out 50% of earnings in bonuses, that’s not really putting the stockholder first, and don’t give me that “retain talent BS” either… great company and they generate a lot of wealth, it’s just that the stockholders just don’t get what they deserve… but it’s America and I choose not to buy it, you guys can have it.
ConvertArb Wrote: ------------------------------------------------------- > let bronzeman sachs How long have you been waiting to use that one