The Goldman Sachs Group, Inc. (NYSE:GS) is one of the stocks that Jim Cramer looked at. A caller asked if the company’s private credit unit will continue doing highly leveraged deals like the one in the Walgreens-Shields transaction. Cramer replied:
“I don’t know. You know Sweeney, Rob Sweeney, my friend Rob Sweeney, or my wife would say an acquaintance, Rob Sweeney, is doing that deal, and he’s real money, good. So I see why they might have done that. And Tim Wentworth’s there too. I don’t know. I mean, I’m a believer. I wouldn’t leave that deal even if I tried.”
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Goldman Sachs (NYSE:GS) delivers financial services including investment advisory, underwriting, lending, asset and wealth management, private banking, and digital financial solutions. On July 16, Cramer discussed the company’s latest quarterly report. He commented:
“The single best report of the big banks came from Goldman Sachs, another Charitable Trust holding… really bailed me out on this one… They changed the… CEO of this today… Goldman blew away the numbers. I think they may have had the best quarter ever…
Big story though, right now, is the return of M&A as M&A advisory revenue grew a staggering 71% year over year, 48% just versus the previous quarter… In the end, the stock rallied more than six bucks today. I think it’s going to be up much, much more. You know why? Because it is just the cheapest when it comes to EPS…
…The craziest thing is that Goldman, a fabulous firm, trades at a big discount to the average stock in the S&P 500 because its earnings used to be so episodic… This quarter showed how the company’s become much more of a well-oiled machine where you’re going to get a number that doesn’t swing wildly good, bad, or indifferent. I think this is the beginning of when the stock gets reevaluated upward and the multiple has a giant upward revision, and that’s going to propel the stock much higher….
When I saw Goldman down six, I said if someone wanted to buy a hundred shares, buy 25 now, buy 25 a little bit lower, and then buy 50. That’s called pyramid style buying, gradually getting… bigger as it goes down… When a stock starts to go lower, it will often keep going lower until all the people who don’t know anything are done selling, and you get a terrific price from their ignorance. We saw that with Goldman today, as the stock eventually rebounded and finished the session up more than six bucks. This was their best trading quarter in history, and it’s a great trading firm, very strong wealth management, beginning of a turn in M&A and IPOs. That’s really all you can ask for from Goldman, and it’s the stuff that’s going to make the stock a much higher multiple stock, and I like that.”
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Disclosure: None. This article is originally published at Insider Monkey.
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