Happy to have exited ARM Holdings short last week at a profit, after it hits ten year high

ARM Holdings (ARM) rose 6.5% or 40p to a ten year high today as Goldman Sachs raised its price target to 800p saying a valuation of 23 times 2015 earnings was justified for a “strategic asset”. Goldman said that whilst ARM was earning 1 per cent royalties at the moment, newer deals had a charge closer to 2 per cent. Looks like the directors sold their shares at the wrong time last week and a relief for me that I closed my short at a profit at less than 590p with the shares hitting 651p today.

Goldman Sachs and Coke deliver strong quarter

Goldman Sachs (GS) has just reported that its quarterly profit doubled compared with the same period a year earlier. Goldman's net income rose to $3.3 billion, $5.59 ashare, from $1.66 billion, or $3.39 a share in the same period in 2009. Estimates were for earnings per share of $4.16. Top line revenue rose 35% to $12.78 billion.

The earnings news has created significant controversy after the news that the SEC was investigating Goldman for potential fraud on a CDO product announced last week and the Financial Services authority (FSA) announcing their own enquiry today. Prime Minister Gordon Brown said he was shocked by the "moral bankruptcy" exposed by the SEC's suit.

Coca-Cola (KO) reported increased earnings of $1.61 billion, or 69 cents a share, from $1.35 billion, or 58 cents, earned in the year-ago period. Adjusted net income was 80 cents a share and revenue rose to $7.53 bn, up 5% versus a year ago as the company delivered volume and market share growth. Analysts estimated earnings of 74 cents a share and revenue of $7.66 billion.

Goldman Sachs charged by SEC with misreporting and drives down financials

The U.S. SEC (Securities and Exchange Commission) has charged Goldman Sachs & Co (GS) and one of its vice presidents with misstating and omitting key facts about a financial product related to subprime mortgages. Goldman shares are currently 20 dollars to $164, and the statement has had a significant impact on the overall market with the DOW industrials currently down 60 at 11,090 and FTSE 100 down 56 at 5,767.


Shorts on the FTSE and DOW placed this morning were closed with this fall.

Earnings in full flow this week

Lots of interesting U.S. financial stock earnings this week kicking off with Citigroup on Tuesday (U.S. market closed Monday), followed by Goldman Sachs and Morgan Stanley later in the week. IBM and Google as well as Advanced Micro Devices are key technology stocks in focus for earnings. General Electric and McDonalds should also influence sentiment.


In the U.K. Land Securities should give further information on the state of the commercial property market and Taylor Wimpey on residential property.