Goldman Sachs (GS) Holds $75/Share, Is This The Cramer Effect?
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After trading down to $75 per share today, shares Goldman Sachs (NYSE: GS) are bouncing back to $79. Is this a Jim Cramer effect?
On his Mad Money show last night, Jim Cramer, a former Goldman-alum, said when the stock hits $75 per share 'buy it'. He said, "if you can buy a stock for $40 a share less than Warren Buffett, you're smart."
Cramer was referring to the $5 billion investment Buffett made in Goldman in September, but actually Buffett bought perpetual preferred with a 10% dividend and warrants to purchase $5 billion of common stock with a strike price of $115 per share. Goldman sold $5 billion common shares to the public at $123 per share.
Shares of Goldman are $36 below the strike on Buffett's warrants and $44 below the price of the common stock offering.
On his Mad Money show last night, Jim Cramer, a former Goldman-alum, said when the stock hits $75 per share 'buy it'. He said, "if you can buy a stock for $40 a share less than Warren Buffett, you're smart."
Cramer was referring to the $5 billion investment Buffett made in Goldman in September, but actually Buffett bought perpetual preferred with a 10% dividend and warrants to purchase $5 billion of common stock with a strike price of $115 per share. Goldman sold $5 billion common shares to the public at $123 per share.
Shares of Goldman are $36 below the strike on Buffett's warrants and $44 below the price of the common stock offering.
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