Financials, Goldman Sachs

This week were are expecting some big financial names to release their earnings. Goldman Sachs tomorrow morning, Lehman Brothers on Wednesday, and Bear Stearns Co. on Thursday, both of them before markets open also.
While GS beat earning expectations last quarter the stock is now 10% from it's highs at about the same level as it was on its last earnings release. So the stock looks like a bargain, specially when you look at the PE and PEG compare to the industry(10.4, 0.7 to 18.2 and 1.4). It looks to me as the stock should double before it would reach average valuations. So what's keeping this stock from taking off? Guidance, I imagine.
Analyst only expect $21.15 EPS for 07 compared to 06's $19.69. That's only 7.41% earnings growth, could that be true? After 06 75.55% earnings growth and 5 year growth rate of 35.75%? I must be missing something.
If you see anything out there that could qualify as a big red flag, please let me know. Meanwhile I'm going to unlock some funds and start a very small position.
Good luck out there!

Monthly Portfolio Performance Report

Well it’s the beginning of a new month and I want to keep sharing how I did. Plus it keeps me honest about my stocks.

• GLD +2.27%
• COP –0.53%
• EEM –3.47%
• VLCM +13.03%
• GOOG –10.06%
• MRK –0.69%
• NUAN +22.67%

For a total weighted gain of +2.17%

Not that my biggest gainers were my smallest cap companies and that I am expecting a reversing trend for the month of March. I wouldn’t be surprised if I end up giving back most of these gains. I expect a lot of red ink this month, down 1.1% on the first day, and probably continue to slide until the fed decides to lower the rates hopefully in May.

I hope Google will bottom out, and energy prices will help lift Conoco.
I still think Merk is a not fully valued, the new drugs coming out indicates great potential, I think most analyst underestimate the sales the will generate.
Nuance has made an other acquisition, and I still expect a lot of upside down the road, and Volcom is just getting started its European growth, and I have a strong feeling the Volcom culture will integrate itself well. European youth will receive well this type of “we’re not the big bag corporations” attitude.

I do plan to take advantage of recent events to add a position, the bargains will be out there, I have a real interest for the financial industry, but I have not yet ruled anything out.