Buffett, Not Whitney Will Call the Top for Goldman Sachs (GS)
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- Option volume leaders today according to Track Data are: BAC GE C GS
- John Paulson Thinks Bank of America (BAC) Shares Will Double
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One of the biggest stories on Wall Street today was Meredith Whitney's downgrade of Goldman Sachs (NYSE: GS) from Buy to Neutral.
Meredith, a noted financial bear, has seen Goldman Sachs as the lone bright spot in the sector. Now she says the stock has gone too far too fast and thus the downgrade. In her note today, Meredith said, "While we are fundamentally constructive on Goldman Sachs over the long term, we prefer to invoke a 'why be greedy' rationale and lock in profits at these levels.
As with her downgrade today, Meredith made headlines back in July when she first upgraded Goldman. Shares of Goldman have risen about 34% since that notable call. While a fine call, Meredith missed much of the 300% run-up in Goldman from the post-Lehman low.
So while Meredith has proven she is a good market timer, she is by no means perfect and further upside in Goldman is not off the table.
So who should you be watching to predict a top in Goldman? I would watch none other than the Oracle of Omaha, Mr. Warren Buffett. If Buffett cashes in his warrants this may signal the top in Goldman. Buffet has Goldman warrants on 43,478,260 shares with a strike price of $115 per share.
Buffett and not Whitney will call the top in Goldman Sachs stocks. When he sells, I would sell too. But this may not happen for a while, maybe not until he is on his deathbed.
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Meredith whitney
DOUBLE J on Nov 17, 2009 12:10 AMMeredith is WRIGHT!!!! She is one of the few including BOB CHAPMAN of The International Forecaster who speak the truth. Goldman S. is one of the goverments controlled banks. How do you think they make all this money? They have inside info just like Buffet . Wake up the media is controlled and the market is proped up and rigged. It does not take Ph.D to figure this out. The banks are broke and the next failed bank will be BOA. The goverment is pouring all the toxic garbage into them.