Goldman Sachs (GS) Sees Initial Sell-the-News Reaction After Blow Out Qtr

xxtrader

April 13, 2009 4:15 PM EDT

Goldman Sachs (NYSE: GS) cuts its quarterly dividend by 25.5% from $0.47 to $0.35 per common share.

April 13, 2009 4:22 PM EDT
Goldman Sachs Group, Inc. (NYSE: GS) reported Q1 EPS of $3.39, well above the consensus of $1.64. Net revenues came in at $9.43 billion.

April 13, 2009 4:44 PM EDT

Goldman Sachs (NYSE: GS) is down 1.3% from the New York close following blow-out Q1 results and plans for a $5 billion equity offering that the company would like to use to payback TARP.

This is likely a "buy the rumor sell the news" reaction as the stock is up 95% since reporting its 'kitchen sink' Q4 and is up 174% from its November low of $47.41.

Also, maybe some think the results are "too good" and will draw attention from Congress. Some in Congress have been trying to paint the company with the conspiracy theory brush due to its current and past ties with financial leaders.

benben

thanks for sharing