Richard Bove: Sell Goldman Sachs

Analyst Richard Bove has reiterated his sell recommendation on Goldman Sachs and cut his earnings estimates. For the year ending November 30, he now predicts $14.16 per share, down from his $15.45 estimate. That puts him firmly on the low side. The average estimate (Thomson Financial) is $16.77 per share. We'll see if others follow him. "Business has dried up," he tells clients in a memo reported on by the AP. He cited weakness in mergers as well as alternative investments and prime brokerage, which may be an ominous sign for the hedge fund industry. While currency and commodities trading has fared well, it will not generate enough to offset the slowdown in other core businesses. "At the moment, the light at the end of this tunnel is very dim," Bove wrote. "In near term, a turnaround in the company's earnings is not in prospect."   

For more:
- here's the AP article

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