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October 2, 2017



For today's bulletin, we take a look at financial giant Goldman Sachs $GS and reports that the bank is studying a trading plan for cyber-currency like Bitcoin. We also provide a link to download a FREE STOCK REPORT on the company

VALUATION WATCH: Overvalued stocks now make up 61.95% of our stocks assigned a valuation and 26.24% of those equities are calculated to be overvalued by 20% or more. Fourteen sectors are calculated to be overvalued. Because overvaluation is now calculated to be above 60%, we have re-instituted our valuation watch.

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--Two Bits, Four Bits, Eight Bits...

ValuEngine STRONG BUY Goldman Sachs Eyes Bitcoin Trading Op

The Goldman Sachs Group, Inc. (GS) is an investment banking, securities and investment management company that provides a range of financial services to corporations, financial institutions, governments and individuals. The Company operates in four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment consists of financial advisory and underwriting. The Institutional Client Services segment makes markets and facilitates client transactions in fixed income, equity, currency and commodity products. The investing and lending activities, which are typically longer-term, include its investing and relationship lending activities across various asset classes, primarily debt securities and loans, public and private equity securities, infrastructure and real estate. The Investment Management segment provides investment and wealth advisory services. As of December 2016, it had offices in over 30 countries.

Financial media is awash in reports today that Wall Street giant Goldman Sachs is exploring options related to trading cyber currencies like Bitcoin. Although no firm plans are yet in place, the Wall Street Journal, Bloomberg, and other outlets are reporting that the bank is in talk with "cryptocurrency experts" about setting up exchanges where clients could trade Bitcoin and other similar vehicles.

This will be tricky for the bank, as the cyber currencies are popular vehicles for a variety of nefarious activities including tax evasion, drug dealing, arms sales, etc. US and other law enforcement agencies are engaged in an onoging battle with so-called "dark web" bazaars that sell everything from credit card numbers to MDMA to weapons. Cyber criminals who infect computers with ransomware also prefer to be paid their ransoms in cyber currencies such as Bitcoin.

In launching this initiative, Goldman has embarked on a different path from competitors such as JPMorgan Chase. Just last month, the CEO at JPMorgan pronounced Bitcoin a "fraud" and promised to fire any bank employee who traded it for being "stupid."

Goldman may see an opportunity here, but one wonders how they can possibly meet various regulatory requirements when dealing with an investment whose raison d'être is providing users with anonymity and easy portability. For now, we'll just have to wait and see what the bank comes up with as more details leak out about its plans.

ValuEngine continues its STRONG BUY recommendation on Goldman Sachs for 2017-09-29. Based on the information we have gathered and our resulting research, we feel that Goldman Sachshas the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Momentum.

You can download a free copy of detailed report on Goldman Sachs (GS) from the link below.



ValuEngine Forecast
 
Target
Price*
Expected
Return
1-Month
239.66 1.04%
3-Month
237.95 0.32%
6-Month
242.72 2.33%
1-Year
266.78 12.48%
2-Year
259.44 9.38%
3-Year
263.85 11.24%

Valuation & Rankings
Valuation
11.11% overvalued
Valuation Rank(?)
42
1-M Forecast Return
1.04%
1-M Forecast Return Rank
98
12-M Return
49.22%
Momentum Rank(?)
87
Sharpe Ratio
0.66
Sharpe Ratio Rank(?)
81
5-Y Avg Annual Return
14.99%
5-Y Avg Annual Rtn Rank
80
Volatility
22.59%
Volatility Rank(?)
65
Expected EPS Growth
5.24%
EPS Growth Rank(?)
29
Market Cap (billions)
103.31
Size Rank
100
Trailing P/E Ratio
12.72
Trailing P/E Rank(?)
86
Forward P/E Ratio
12.09
Forward P/E Ratio Rank
76
PEG Ratio
2.43
PEG Ratio Rank
19
Price/Sales
3.20
Price/Sales Rank(?)
35
Market/Book
1.19
Market/Book Rank(?)
75
Beta
1.42
Beta Rank
22
Alpha
0.09
Alpha Rank
73

 

DOWNLOAD A FREE SAMPLE OF OUR GOLDMAN SACHS (GS) REPORT BY CLICKING HERE

 

ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
Contact ValuEngine at (800) 381-5576 or support@valuengine.com  
Visit www.ValuEngine.com for more information

 

ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine's award-winning stock research.
Contact ValuEngine Capital at info@valuenginecapital.com
Visit www.ValuEngineCapital.com for more information

 

 
 
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