Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (16233)	4/9/2011 5:14:18 PM
From: ggersh	Read Replies (1) \| Respond to of 119362

Well we now know who killed Laura Palmer.-vbg- Goldman Sachs: "The Margins Are Not What They Seem" Submitted by Tyler Durden on 04/09/2011 13:55 -0400 And for today's exercise in surreality, in your best Agent Cooper voice repeat after us: "The margins are not what they seem." Why? Because in his latest Weekly Kickstart, the next incarnation of A Joseph Cohen, David Kostin appears to be channelling David Lynch when he says: "Company-level margins can fall while aggregate margins for the market continue to rise. If high margin stocks grow sales faster than low margin stocks, the index-level margin still expands." We won't even parse the logic of the first sentence. As for the big "if", so that's what Goldman bets its FYE 2011 S&P 1,500 target on - now we know. "The apparent fallacy of composition may be explained by the simple fact that revenue growth matters." See, David, that's why you get paid the big bucks. But it does not end there: "Analysts expect 66% of S&P 500 ex Financials and Utilities stocks will expand margins in 2011." Now that with Brent at nearly $130 makes absolute sense. In other news, we now know who killed Laura Palmer.