“When Goldman Sachs kicked Apple Inc. off its celebrated Conviction Buy List, casual observers might have seen the move as yet another blow to a battered stock,” David Zeiler writes for Money Morning. “But don’t be surprised if Apple stock rallies in the months ahead.”
“That’s because when you look at the record, most stocks that get dropped from Goldman’s Conviction Buy List – a frequently updated list of equities the bank says will outperform the market – don’t falter,” Zeiler writes. “In fact, over the past six months, most of the stocks that Goldman has booted off the Conviction Buy List have gone up, and several have actually outperformed the market.”
Zeiler writes, “Another suspicious pattern in the timing of when Goldman takes a stock off its Conviction Buy List has to do with how late the bank seems to make its call. Just take Apple, for instance. Apple stock plunged more than $250 over a period of several months, but Goldman stubbornly kept it on the Conviction Buy List. Only this week, long after the damage had been done, did Goldman finally get around to dropping it.”
Much more in the full article here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Trillot Bernard” for the heads up.]