After witnessing record breaking highs, the S&P 500 has sharply declined. Many believe that this is just a passing phase and the markets are only correcting to realistic levels, but some sceptics feel that this might be the first glimpse of a bear market. Goldman Sachs has in fact prepared a list of stocks that are ideal for short selling. We have brought for you some, from that very list.
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BERKSHIRE HATHAWAY
The cost of short positions: $ 1.7 billion since the beginning of the year Yield: 28%. Commentary: in II quarter operating profit was $ 3.9 billion, higher than forecast.
WALT DISNEY
The cost of short positions: $ 2.2 billion since the beginning of the year Yield: 25%. Commentary: earnings per share for the II quarter increased 2% to $ 1.03.
CHEVRON
The cost of short positions: $ 2.2 billion since the beginning of the year Yield: 14%. Commentary: Chevron profit in II quarter decreased by 26%.
VERIZON
The cost of short positions: $ 2.3 billion since the beginning of the year Yield: 16%. Commentary: AT & T has added 550 million mobile customers. Also, in the II quarter, the company sold 6.8 million smartphones.
CATERPILLAR
The cost of short positions: $ 2.7 billion YTD Return: – 3%. Commentary: in II quarter revenue fell by 43%.
MERCK
The cost of short positions: $ 2.9 billion since the beginning of the year Yield: 19%. Commentary: Merck net profit in II quarter was $ 906 million, which is $ 170 million less than a year ago.
AT & T
The cost of short positions: $ 3.2 billion since the beginning of the year Yield: 6%. Commentary: earnings per share for the II quarter was $ 0.67.
IBM
The cost of short positions: $ 3.4 billion YTD Return: – 2%. Commentary: the company’s revenue in the II quarter decreased by 3% to $ 24.9 billion.
GILEAD SCIENCES
The cost of short positions: $ 3.8 billion since the beginning of the year Yield: 55%. Commentary: profit in II quarter increased by 9%.
EXXON MOBIL
The cost of short positions: $ 4.5 billion since the beginning of the year Yield: 4%. Commentary: in II quarter revenue fell 14%.
INTEL
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The cost of short positions: $ 5.7 billion since the beginning of the year Yield: 10%. Commentary: Intel’s net profit in the II quarter increased 2% to $ 12.8 billion
