What company is the happiest in the world for the BP oil spill? The answer is Goldman Sachs (GS). Since the oil spill in the Gulf of Mexico, the federal government and national media have shifted their attention to the offshore oil drillers. With Transocean (RIG) and BP (BP) in the crosshairs of federal regulators, Goldman’s shares have finally stopped dropping. Shares appear to have found support at $139.
Goldman’s stock was pummeled as the investment bank’s reputation was dragged through the mud. Now there is news that the government is looking at other financial firms as well. Now Morgan Stanley, JPMorgan Chase, UBS, Citigroup, and Deutsche Bank are also being investigated for fraudulent criminal activities. Now may be a good time for investors to look at shares of Goldman. At $144 a share, Goldman trades at 1.2 times book value. It seems like a cheap price to own a fabulous franchise.