The Goldman tower in Jersey City may not fetch the real estate value that the BSC headquarters should fetch, but the foundation is a lot stronger according to the earnings chatter since GS posts earnings this morning.The pre-market has GS trading above $164.00, putting my GS calls in good shape at open. So the question is do we take profits now, hedge for the 2:15 pm Fed announcement or let it ride a little because they are April call positions?
Well the CFO has been very upbeat, considering that the investment banking community has been shell shocked over the last week and quarter. They are even expecting to hire some in 2008. Their mortgage portfolio has fallen to $4 billion from $23 billion in the last quarter and their leveraged loans has fallen to $27 billion from $43 billion. This is a company that understands risk management.
I am therefore sticking with my position with the intent of potentially exercising the calls next month. Even if the market sells off after the Fed announcement, I think the market has ensured a ton and is still kicking, meaning that a bottom may have beed defined.
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