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    • Mon Oct 20th 02:33 AM | Rating: 0 0
      Commented on:
      Roger Wiegand: 'Severe Bull Market' Ahead for Gold
      Goldman Sachs also cuts gold price forecast

      Strengthening dollar causes gold outlook to dim
      by Tom Stundza -- Purchasing, 8/20/2008 1:11:00 PM
      Precious metals analysts at Goldman Sachs in New York have reduced their gold price forecast to average $745/ounce over the next three months, bringing the second-half forecast to $810/oz and creating an average annual gold price of $827 In a note to clients, the brokerage’s analysts say the revised forecast is based on a more positive outlook for the U.S. dollar. (Financiers usually pick the dollar or gold for “safe-haven” investments.)

      Earlier this week, an more bearish forecast by precious metals analyst John Nadler at the Kitco bullion dealer’s Canadian branch in Montreal put the precious metal bullion's price somewhere between $680 and $730 for the remainder of the year. That outlook would put the 2008 annual average gold price around $800/oz, as opposed to the earlier consensus projection of $924. Manufacturers use gold in electronics and medical applications as well as in jewelry.

      “The U.S. dollar has recently begun to show initial signs of strength as the fundamental picture for the dollar has improved substantially in recent weeks, Goldman Sachs reports, adding that “as the dollar is now expected to strengthen…we are lowering our gold price forecast.”
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    • Wed Oct 15th 21:42 PM | Rating: 0 0
      Commented on:
      Google: A Giant in Transition
      Here's what Ross Sandler actually predicts. As you'll see, based on his downwardly revised target price, he feels that Google, at $330, is very undervalued. The $290 you site in your article was meant to show that Google, at $330, is nearly priced for worst case scenario and, therefore, downside risk is small compared to the potential upside. Here's the Ross Sandler evaluation......

      RBC Capital’s Ross Sandler maintains an Outperform rating, but today cut his price target to $500 from $600. For 2008, his EPS estimate is now $19.14, down from $19.45; for 2009 he now sees $21.24, down from $23.46. The move, he writes is “based on the deteriorating macro environment.” (I bet you sure are surprised to here that.) He says search is holding up better than other forms of online advertising, but that “no company is immune to cyclical factors.” He also says that consensus estimates calling for 10% sequential growth in Q4 and 24.6% growth in 2009 “still appear aggressive.” That said, Sandler writes that GOOG is still “the best long idea in our coverage universe,” and contends the stock is approach a “worse-case valuation scenario.”

      Bernstein Research analyst Jeffrey Lindsay made a similar move. He maintains an Overweight rating on the stock, but cut his target to $560 from $660, lowering his estimates to $18.68 from $19.03 for this year, and to $21.09 from $22.68 for 2009. Lindsay notes that search-based advertising continues to outperform display, classified and sponsorships ads, but he does see three places where GOOG gets hurt in the downturn: lower paid search conversion rates; lower keyword pricing as ad budgets fall and price competition from TV and radio increases; AdSense partners are likely to “continue to under-perform,” especially in social networking. But he adds that “we still believe that Google’s intrinsic value is much higher than today’s market price.”
      View article »
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