My friend Keith at Research Edge has been on a roll of late, and he is irked at Goldman. The reason? Its shelf registration of "indeterminate amount" that GS dropped on the market after the close on Friday.
Goldman conveniently waited until after 5PM on a Friday of the worst week in the US stock market since the early 1930’s to file a mixed shelf registration of "indeterminate amount". Marcus Goldman must be rolling in his grave.
Investors, including Warren Buffett, and clients alike must watch what GS and MS do, not what they say. Never mind this ridiculous notion that it’s the evil doer short sellers at fault. That is both alarmist and un-American. Bear, Lehman, Merrill, Morgan, and Goldman all said they didn’t need capital, remember? Earlier this week, Lehman’s Dick Fuld appeared in front of the American people. He still couldn’t find it within him to take on 100% of the accountability for Lehman’s demise. If you guys are going to get paid to wear the ‘C’ on your jerseys, let’s get real.
Research Edge is built on 3 core principles: Transparency, Accountability, and Trust. I am issuing an open challenge to the CEO’s of these two companies, Goldman Sachs and Morgan Stanley, to come to New Haven, CT, and have a Yale student organized town hall meeting on those three items and how they see them fitting into their current business model. CNBC can televise it, instead of wasting people’s money and time with "Fast Money". We can start at 6PM, promptly.
Go get ’em, Keith. I’m not optimistic it’ll happen, but I’ll watch if it does.