Hank's House: Goldman Sachs
With rates (finally) pausing and the Fed jihad nearing a close, it should surprise no one that the financials are rallying.Goldman Sachs hit 5 year high on Wednesday.
This is clearly a stock you want to own.
Goldman is still trading at a below-industry multiple.
Goldman still generates decent ROE considering the industry it is in.
GS continues to underwrite new issues for America's hottest companies, like last week's explosive Under-Armor IPO.
GS is getting more publicity than ever before -- CNBC commentator James Cramer is a Goldman alum and isn't ashamed to remind his 400,000 + viewers at least once a night.
Goldman's footprints are in every solid financial service space conceivable.
GS is run by Hank Paulsen, whose picture should be in the dictionary next to the word "execution."
We have a $185 price target on shares of Goldman.
A little high? You bet.
When the Street wakes up and realizes that GS is worth 20 X earnings and at least 3.5 or even 4 X book, GS will be valued barely where it was when it went public in 1999.
That's gold, Jerry, gold!
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