Shares of Goldman Sachs (NYSE: GS) got a boost on Thursday after Rochdale Securities analyst Dick Bove said he believes the firm is buying credit-default swaps on Greece. If Bove is correct, it kind of makes Goldman an anti-Greece play, considering that if Greece were to falter then Goldman would get paid a nice return on the investment.
The comments came up when Bove was discussing why the stock has been strong of late, especially trying to figure out why the Wall Street bank rose 2 percent on Wednesday, while the broader market finished lower.
“Technicians have noted that the stock has penetrated the $167 to $168 resistance point and that this is now a support line,” Bove wrote in a research note published late Wednesday, according to a report by TheStreet.
Bove is generally viewed as being bullish on Goldman Sachs, with or without the Greece theory, believing any financial reform bill implemented will have limited impact on the bank.
The analyst believes Goldman Sachs is currently selling at a discounted price.
