Goldman is Notoriuos for firing out sell or short sale rec's as they cover a huge proprietary short position! Don't believe me? Check out X! Goldman blasted X twice in 3 days a week ago at $20/share. X went straight to $28(literally). Issued a short sell rec on SEPR at the 52 week low($10.50).......It went straight to $16 in 5 trading days(approx)...........U won't find Sepr trading any longer as it was acquired for $19.50 cash within weeks of the short rec. GS issued a sell rec on MYGN as the co. was buying back $300 million of stock & fundamentals vs valuation were wildly bullish........Mygn traded straight to $26. Leap wireless given a Shortsale rec & promptly sky-rocketted to $20(on take over rumours.....Goldman was then annc'd as being hired to shop leap for a sale. Where are the regulators? For a Co. that makes 10's of billions from their proprietary trading activities it's hard to phathom pick after pick being dead wrong. Dead wrong & so timely the other way(short & sell rec's consistently up huge within days/hrs of the recommendation). U can take it to the BANK(Goldman Sach's INV bank) that JEF will be up huge in the coming days! The best part of the story is Each bogus Reccomendation is totally indefensible from a valuation/fundamental basis. In Jef's case they have crushed each short thesis. 1st it was Europe exposure but once Jef clearly disclosed that exposure(on a net basis) the new argument was Jef's hedges were worthless given counter parties were European banks. Jef responded by eliminating all European exposure except $135M which they are short. Ooop's Goldman decides the "new" issue is the repo mkt & increased interest expense that will cause a bad quarter for JEF. The laughable thing is JEF is priced like its going BANKRUPT not priced for an earnings miss. The genius analyst at Goldman can surely do a valuation analysis & conclude extreme under value here. ERGO the SELL REC & ensuing massive short covering rally! I could go on & on with example after example...........do your homework & U shall see the truth! Then U will get long HUGE!
If history is an indicator...JEF will be $15 within days as Goldman sweeps every offer between here & there. Their massive accumulation sets off a massive short squeeze as hedge funds(out of the loop) figure it out. Those that didn't get the memo will initially add to short positions as they continue to believe that massive shorting turns Jef's failure into a self fufilling prophecy. HEED my advice & get as long as u can afford! If so, U will have a very Merry Christmas!