The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services primarily to corporations, financial institutions, governments, and high-net-worth individuals worldwide. It operates in three segments: Investment Banking, Trading and Principal Investments, and Asset Management and Securities Services. The Investment Banking segment provides financial advisory services, such as advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and underwriting services, including public offerings and private placements of common and preferred stock, convertible and exchangeable securities, investment-grade debt, high-yield debt, sovereign and emerging market debt, municipal debt, bank loans, asset-backed securities, and real estate-related securities. The Trading and Principal Investments segment engages in market making, trading of, and investing in fixed income and equity products, currencies, commodities, and derivatives on these products. It also involves in specialist and market-making activities on equities and options exchanges; clearing client transactions on stock, options, and futures exchanges; and making principal investments directly and through funds that the company raises and manages. The Asset Management and Securities Services segment provides investment advisory and financial planning services, and investment products; and offers prime brokerage services, financing services, and securities lending services. As of November 24, 2006, the company operated offices in approximately 25 countries. The Goldman Sachs Group was founded in 1869 and is headquartered in New York, New York.
Value is a measure of a stock's current worth. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. Value minded investors advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge. GS has a current Value of (SIT TIGHT!!!) $322.99 per share. Therefore, it is undervalued compared to its Price of $157.40 per share. Fundamentally it is an outright BUY but technically it is Buy at Support & Sell at Resistance >>> please refer to GS Chart.
RV (Relative Value):
RV is an indicator of long-term price appreciation potential. GS has an RV of 1.64, which is excellent on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. ZLBT favors the purchase of stocks with RV ratings above 1.00.
RS (Relative Safety):
RS is an indicator of risk. GS has an RS rating of 1.12, which is good on a scale of 0.00 to 2.00. RS is computed from an analysis of the consistency and predictability of a company's financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors. A stock with an RS rating greater than 1.00 is safer and more predictable than the average stock in the database. ZLBT favors the purchase of stocks of companies with consistent, predictable financial performance.
GS has a Hold recommendation. REC reflects the cumulative effect of all the FA & TA softwares' parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. ZLBT recommends that investors buy rated stocks prudently during rising markets.
This is only a 2 (Malaysian not US cents) sens view of the publisher.
Traders are advised to excercise discreetions and to consult their remisier for more details & infos