"Did you really believe all this tough talk
and the press conferences about the Fed's new
focus on topline inflation and a strong dollar?"
nowandfutures.com
(Scroll down to M3 charts.)
"And remember how - when the dust cleared....
Goldman Sachs emerged with billions in profits
from being on the "other side" of that trade?"
tinyurl.com
With respect to this Goldman "Special Event" story, here's a blast from the past, sorry, can't find link to original web page, which has likely been erased from the Goldman archives and only now exists on secondary blogsites:
GOLDMAN SACHS, October 9, 2001 -
Recommended List Large-Cap Growth
Price:US$33.45 Target price: US$48 S&P 500: 1051
UNITED STATES ENRON CORPORATION (ENE)
Gas & Power Convergence
Still the best of the best. With perceptions far below reality, we
see major catalysts in third-quarter results and increased disclosure
in coming months. We strongly reiterate our Recommended List rating
and our conviction in high and sustained growth prospects, even
though we have cut 2002 EPS to $2.15 and our price target to $48. We
expect Enron shares to recover dramatically in the coming months. We
view the current period as an extremely rare opportunity to purchase
the shares of a company that remains extremely well positioned to
grow at a substantial rate and earn strong returns in the still-very-
young and evolving energy convergence space.
We strongly reiterate our Recommended List rating on Enron stock. We
spoke recently with top management including the CEO, CFO, chief
accounting officer, and the head of wholesale services. We challenged
top management on the wide range of investor concerns that have
weighed heavily on the shares and believe that the majority of market
speculation is groundless, and that which has some truth to it, to be
exaggerated.
Misconceptions abound and perceptions are far below reality, in our
view We believe that investors have virtually given up on Enron (down
60% year to date) and its prospects based on the long list of
extremely negative stories about the company and its financial
condition. The company's limited transparency on its sources of
earnings, its cash flow, and financials in general has hurt investor
perceptions as management has declined to be more specific in
refuting outrageous claims that have assumed a life of their own.
We believe Enron's fundamentals are still strong despite the weak
economy. We view Enron as one of the best companies in the economy,
let alone among the companies in our energy convergence space. We are
confident in the company's ability to grow earnings more than 20%
annually for the next five years, despite its already large base.
NC |
