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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Pluvia who wrote (34770)	5/5/1999 10:37:00 AM
From: J.Y. Wang	Read Replies (2) \| Respond to of 122087

<GS> Why do you think GS will go higher from here?

To: Pluvia who wrote (34770)	5/5/1999 10:58:00 AM
From: Anthony@Pacific	Read Replies (2) \| Respond to of 122087

I dont agree..I think it trades lower than the IPO..and I think Goldman bagged the public........again..It will be a few months befor e it ever recovers

To: Pluvia who wrote (34770)	5/5/1999 11:05:00 AM
From: Wolff	Read Replies (1) \| Respond to of 122087

GS: According to Bloomberg, Merrill Lynch trades at 28.1 times 1998 profit and Morgan Stanley Dean Witter trades at 16.7 times last years income. If Goldman, Sachs prices at $55/share, it will trade at 19.7 times 1998 earnings. For further comparison, Bears Sterns currently trades at a P/E of 12.93 By my calc 75 price gives 26.86 P/E which puts it near the top of current equivilants, and gives plenty of lower valuation potential. To justify there price they will need strong results, and profits have been on the decline recently. Even in the best case this is a long term hold with very little upside past 75 for a good long time.