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Apple Inc. Message Board

  • stallone4676 stallone4676 Jan 31, 2013 4:39 PM Flag

    Why Goldman sold Apple structured notes to investors???

    Because Goldman doesn't believe apple stock will move higher from current level???

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    • Why not? They currently have a BUY rating on Apple. Sounds like the typical revolving-door thing these schmucks do.

      • 1 Reply to end_rever
      • Goldman Sachs and the Apple structured bond deal
        By Philip Elmer-DeWitt January 29, 2013: 7:15 AM ET

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        Wall Street's great vampire squid strikes again

        Screen Shot 2013-01-29 at 6.58.59 AMFORTUNE -- Last Tuesday, the day before Apple (AAPL) released its holiday quarter earnings and two days before the company lost $60 billion in market value, Goldman Sachs (GS) sold $30 million worth of so-called structured bonds tied to the performance of Apple's stock, SEC filings show.

        At the time of the sale, Bill Shope, Goldman's Apple equities specialist, was predicting that the company's shares would climb to $760 within 12 months. The day after the earnings report, he lowered his Apple price target to $600. The bonds Goldman sold, a complicated form of bank debt, convert to Apple stock if the company's shares fall below a pre-set strike price.

        Goldman Sachs denies it made money betting against its clients in this case. In 2010 the company Matt Taibbi memorably described Goldman Sachs as "a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money," paid a $550 million fine -- the largest ever by a Wall Street firm -- to settle SEC charges that it misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse.

        According to Bloomberg, investors bought $1.75 billion of structured notes tied to Apple last year, making it the second-most popular reference measure after the S&P 500 index. According to a report on these types of notes in the Wall Street Journal last week, the vast majority of the 450 Apple structured bonds issued in 2012 are now underwater.

    • hottopics333 Jan 31, 2013 4:43 PM Flag

      Bright day robbery by Goldies and clown

    • To make money?

    • Another clever way to steal small investors money just like sub prime!!
      God knows how else they are making money from?.

      Sentiment: Strong Buy

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