Goldman Sachs (GS) Offering Possible 41.24% Return Over the Next 28 Calendar Days

Goldman Sachs's most recent trend suggests a bullish bias. One trading opportunity on Goldman Sachs is a Bull Put Spread using a strike $242.50 short put and a strike $237.50 long put offers a potential 41.24% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $242.50 by expiration. The full premium credit of $1.46 would be kept by the premium seller. The risk of $3.54 would be incurred if the stock dropped below the $237.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Goldman Sachs is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Goldman Sachs is bullish.

The RSI indicator is at 76.32 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Goldman Sachs

Goldman Sachs BDC, Inc. — Moody's assigns first-time Baa3 issuer and senior unsecured ratings to Goldman Sachs BDC
Thu, 23 Jan 2020 01:38:07 +0000
Moody's Investors Service, (“Moody's”) has assigned a Baa3 issuer rating to Goldman Sachs BDC, Inc. (GSBD), a publicly traded business development company (BDC) managed by Goldman Sachs Asset Management, L.P. (GSAM), an asset manager indirectly owned by The Goldman Sachs Group, Inc. (GS; A3 stable). Moody's has also assigned a Baa3 rating to GSBD's $155 million senior unsecured convertible notes due 2022.

Carmakers Must Do Better Just to Keep Up in China
Wed, 22 Jan 2020 22:00:36 +0000
(Bloomberg Opinion) — The world’s largest car market is cratering and there are few signs of a recovery. It was never supposed to get this bad —  and even if it got close, a helping hand from Beijing would steer things out of any prolonged trouble. Or so people thought…  Instead, passenger car sales in China fell 9.5% last year, more steeply than the 4.3% in 2018, which was the first annual sales decline in over a decade. The drop has dragged down the global automobile industry and its deep supply chain. That leaves automakers in limbo. After years of relying on the Chinese market for its double-digit volume growth, they don't seem too sure about whom to build cars for, or what kind. Beijing’s lackluster stimulus last year included a grab-bag of measures: removal of car-purchase limits, support for buying electric cars and incentives to build infrastructure like rural gas stations. They haven't done much to revive demand. Consumers were waiting for more, which simply led to a steeper slide in sales. With no new sweeteners and the distortions of past stimuli fading, a real picture of demand is emerging. It’s nuanced. There are fewer first-time buyers, and more who are purchasing replacement vehicles. They’re increasingly looking to upgrade, and also buying more used cars. In a word, consumers are being more discriminating.Luxury carmakers account for around 15% of the market and are doing better than the rest. Porsche Automobil Holding SE, for instance, delivered 86,752 vehicles to customers in China last year, up 8% from 2018. In December, BMW Brilliance Automotive Ltd.’s average daily vehicles sales rose 21% on the year, up from 5% in November. Down the food chain, buyers of family-friendly cars are upgrading. Demand for sports utility vehicles and sedans remains depressed but is shifting toward higher-end, in-between cars, according to analysts at Goldman Sachs Group Inc. Buyers of these so-called multi-purpose vehicles, or MPVs, have long bought the same few basic models, priced between 40,000 yuan ($5,800) to less than 100,000 yuan. As the market was flooded with SUVs, aspirational buyers stayed away. Now, manufacturers are improving design and comfort, and raising prices.A slew of MPV models will be released this year. Going by low discounts compared to the rest of the market, demand remains sturdy. Goldman’s analysts estimate that in every 1% of demand that moves to the higher-end MPVs lies an annual revenue opportunity of almost 50 billion yuan ($7.25 billion). Here’s the hard reality: The double-digit growth days of selling nearly 25 million cars a year are vanishing in the rearview mirror. So are outsize profits from China. Much like the U.S. market, the type of demand will evolve and how people get around will change. Younger Chinese are more inclined to use ride-hailing services. The older people get, the less likely they’ll obtain driving licenses. China’s population is aging rapidly. This is a structural slowdown.In theory, China has plenty of room to sell more cars. Penetration rates are low and so is the national percentage of licensed drivers. The carmakers are banking on semi-urban China, ostensibly the most upwardly mobile consumers. But sales are unlikely to top 20-some million a year, even with the push toward electric vehicles (only 5% of cars sold now) and regulations that will eventually force buyers to go green. For now, higher technology only raises the cost of car ownership out of reach.The market is oversupplied, no doubt. The good news is that inventories are coming down as automakers try to stay in the black. Toyota Motor Corp. has increased the types of models it sells in China and gained market share. As weaker players drop out and the industry consolidates, the likes of Honda Motor Co. and Volkswagen AG are taking a bigger piece. Failure to rigorously manage output will mean a pile of clunkers. Changan Ford Automobile Co. is sitting on some of the highest levels of inventory, as is SAIC General Motors Corp.’s Baojun. GM continues to lose market share. Ford Motor Co. said last week that its sales in China dropped 26% in 2019. European carmakers have also struggled.  Making money by churning the assembly lines won’t cut it anymore. The China Road to success is a lot narrower. Only the companies that drive it smarter will survive.  To contact the author of this story: Anjani Trivedi at atrivedi39@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

WeWork Sells Its Stake in Women-Focused Co-Working Startup the Wing
Wed, 22 Jan 2020 19:09:39 +0000
(Bloomberg) — WeWork has sold its minority stake in the female-focused co-working startup the Wing, part of parent company We Co.’s efforts to re-focus on its main office-sharing business.The company had been exploring the sale since last year, Bloomberg previously reported, following the theatrical dissolution of its plans for an initial public offering and the ouster of its chief executive officer, Adam Neumann.“Last quarter, we articulated a long-term plan for disciplined growth and a clear path to profitability, and we continue to execute on this plan each day,” Co-CEO Artie Minson said in a statement.A group of investors purchased WeWork’s stake in the Wing. The group included GV, formerly Google Ventures, as well as existing investors Sequoia Capital and NEA. The Wing also said it had added actress Mindy Kaling as an investor, adding her to a list of backers that also includes athletes Serena Williams and Megan Rapinoe. Fortune earlier reported some details of the sale.“In three years, the Wing has grown from a single location to a global community of women,” co-founder and CEO Audrey Gelman said in a statement.In addition to divesting its stake in the Wing, WeWork said it would sell Teem, a cloud services developer, to iOFFICE, a facility management software company. It also said it was in the process of selling Meetup, a website used to create online groups for in-person events, and Managed by Q, a workplace management platform.On Wednesday, the company also said it is expecting a $1.75 billion credit line from Goldman Sachs Group Inc. that it secured in December to become available within the coming weeks.(Adds investor details in the fourth paragraph.)To contact the reporter on this story: Nikitha Sattiraju in New York at nsattiraju@bloomberg.netTo contact the editors responsible for this story: Molly Schuetz at mschuetz9@bloomberg.net, Anne VanderMey, Jillian WardFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Oil Hits 7-Week Lows, Pummeled by Coronavirus, U.S. Fuel Builds
Wed, 22 Jan 2020 16:01:00 +0000
By Barani Krishnan

Gold Caught In Coronavirus Cross-Current
Wed, 22 Jan 2020 15:37:00 +0000
By Barani Krishnan

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