Is Goldman (GS) Losing Its Edge?
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Goldman Sachs (NYSE: GS) shares are underperforming the broader stock market Wednesday as traders are discussing a number of data points from the bank's 10-Q, released early this morning.
Goldman reported trading losses on 21 days during the third quarter. One of the days saw trading losses of more than $100 million, more than offset by 9 trading sessions with gains above $100 million.
The bank reported losses on just two days of trading during the third quarter of 2010, on 15 days in the second quarter of 2011, and just one day in the first quarter of this year.
Comparatively, JPMorgan (NYSE: JPM) reported 16 trading losses during the latest quarter, Bank of America (NYSE: BAC) traders saw 20 losing days, and Morgan Stanley (NYSE: MS) 31 days.
Goldman also lowered Value-at-Risk (VaR) from $121 million during the third quarter of 2010 to just $102 million last quarter. Average VaR through the quarter varied from $83 million to $145 million.
As is probably expected, a lower risk profile and losing days which continue to pile up have investors questioning Goldman's top-shelf status. While issues at the bank are only recently beginning to be felt (see Goldman's Q3 report), the market seems to be smartly ahead of results: Goldman shares have underperformed the S&P 500 and XLF by almost 40 percent and 17 percent, respectively, this year.
Goldman reported trading losses on 21 days during the third quarter. One of the days saw trading losses of more than $100 million, more than offset by 9 trading sessions with gains above $100 million.
The bank reported losses on just two days of trading during the third quarter of 2010, on 15 days in the second quarter of 2011, and just one day in the first quarter of this year.
Comparatively, JPMorgan (NYSE: JPM) reported 16 trading losses during the latest quarter, Bank of America (NYSE: BAC) traders saw 20 losing days, and Morgan Stanley (NYSE: MS) 31 days.
Goldman also lowered Value-at-Risk (VaR) from $121 million during the third quarter of 2010 to just $102 million last quarter. Average VaR through the quarter varied from $83 million to $145 million.
As is probably expected, a lower risk profile and losing days which continue to pile up have investors questioning Goldman's top-shelf status. While issues at the bank are only recently beginning to be felt (see Goldman's Q3 report), the market seems to be smartly ahead of results: Goldman shares have underperformed the S&P 500 and XLF by almost 40 percent and 17 percent, respectively, this year.
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