Goldman Sachs: The Strongest And The Cheapest
By Qineqt:Few days of relative underperformance don't take away the iconic status of Goldman Sachs (GS). Rather, it presents an interesting opportunity to buy the investment bank having a strategic competitive advantage. Goldman's management intends to keep its reliance on technology to maintain its competitive edge and profitability. On the technology front, Goldman has recently taken few initiatives to expand its direct market access, and solutions related to the algorithmic trading and smart order routing.
Investment Rationale
GS remains the best brokerage franchise, and despite a challenging operating environment for the brokerage industry, I have an overweight stance on the stock. The stock deserves premium valuation due to its solid positioning in the market, balance sheet strength, superior technology and a good track record of gaining and sustaining market share. In 1Q12, quarterly dividend was raised to $0.46/per share, a 31% increase. In addition, so far Goldman has been successful inComplete Story »
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