Abby Baby cuts her target to 1250 from 1500, and says market is 25% undervalued. Here's nice piece from cyclepro:
The Marionette of Wall Street -- Abby Joseph Cohen has been rumored to be able to speak even while drinking a glass of water -- more evidence that her prediction of S&P500 to rally +38% (to 1500) by year-end is likely "wired" by Uncle Goldman. No respectable analyst, however bullish, would make such a strong projection in the current fundamental environment! Goldman-Sachs' earnings are largely dependent upon a continuation of the bull market -- Ms. Cohen's personal holdings in GS stock may offer a partial clue to her published outlook -- GS insiders collectively may offer even more perspective. According to Edgar Online, there are several accounts of interest: Abby Joseph Cohen, The Abby Joseph Cohen 2000 Family Trust, The Abby Joseph Cohen 2000 Annuity Trust I, The Abby Joseph Cohen 2001 Annuity Trust I, The Abby Joseph Cohen 2001 Annuity Trust II. For the period of September 25, 2000 through November 10, 2000 Ms. Cohen personally sold 10,000 shares and GS insiders sold 7,897,714 shares. During the time of these sales, the GS stock price ranged from $130's to $80's, at an average of about $100 per share, that's $790 million for insiders and $1 million for Ms Cohen. It was on September 14, 2000 when Ms. Cohen announced in public her projections of DJIA 12600 and SP500 1575 by year end (2000). The most recent Edgar data shows GS insiders sold 6,677,370 shares from 6/27/2001 through 8/3/2001 with the GS stock price between $80 and $91.50 -- that amounts to $534M to $611M. It was after this bout of selling (8/21/2001) that Ms. Cohen announced that she was lowering her year-end S&P500 projection from 1550 to only 1500. |
