Tuesday, 14 April 2009

glittering goldman

L: 27% S:20% G: 47% N: 6% ~ $D -5% $G 26% $V 0% $P 1%

GS beat "expectations", well perhaps not mine, if ever bank has been banging on about how good Q1 has been its pretty hard to be surprised that GS had a good start to the year. Its interesting to note thought that they'd be looking to sell $5bn of stock, the Raven presumes that its due to it wanting to hand back TARP funds (a rational desire). There has been commentary when some of the 'smartest guys on the street want to sell you something that recentley doubled' you should be cautious. The Raven isn't convinced as he can see an argument that holders are going to make that this is a positive event and demonstrates the convidence of the market in the firm and a step away from the government, especially if its the first firm to do so.

Its also interesting to see HSBC is looking to sell its office space and lease it out again, as far as the Raven remembers they sold it at the peak to some lucky punters and then bought it back from them at a much lower price. Perhaps they're looking to repeat the trade?

The Raven has picked up some of the defensive stocks that the market is throwing away today, like TSCO and VOD. He's also looking to pick up some more downside puts on the SPX, 750-700 strikes in MAY look pretty reasonable, although he realizes he's going to be bleeding carry away its mentally a lot easier than being short and covering the whole way up, if it doesn't crack it makes it easier to throw in the towel, and if it does then he doesn't have to chase it.

No comments:

Post a Comment