Yesterday the stock closed up $3.14 at $179.50.
From MarketBeat:
Goldman Sachs shares have been on a tear lately. They’re up 8.3% this year, 15% since the end of February and 6% so far this week, after leapfrogging their 200-day moving average on Monday. What’s behind the action?
Rochdale securities analysts Dick Bove says investors have been laying bets on Goldman based on the belief that the company has been snapping up credit default swaps that would pay out in the event of a default of the Hellenic Republic. Brendan Conway of Dow Jones writes:
On Wednesday, Rochdale Securities stock analyst Dick Bove suggested that Goldman may actually end up one of the big beneficiaries if bad turns to worse in Greece....
...Goldman spokesman Michael DuVally said the company “has bought some credit protection, but we are exposed to loss in the event that Greece’s credit worthiness deteriorates.” He declined further comment on Bove’s assessment.
This issue really goes to the heart of Goldman’s public relations challenges at the moment. The pitchfork wielding citizenry sees the fact that Goldman takes positions that are at odds with products it sells as evidence of duplicity. The firm sees it as responsible hedging. And according to Bove, investors see the prospect of Goldman betting big on a Greek default as a potential windfall....MORE
