By and large I agree with you. But Goldman's reputation has taken a beating in Asia because of their involvement with 1MDB in Malaysia. I just hope between 2012 and now, they have stiffened up their internal processes and due diligence procedures, and they are no more as mercenary as before to make money at all costs.
But for all we know, it may not be an internally, research driven transaction to buy FLC but just fulfilling a client's order. I am more inclined to believe it is so. The repututional risks are too high for GS if they recommend to clients to buy such a small company like FLC, only to see it flop. So I am inclined to believe they are being just a mere broker, buying for their clients.
Declared interest: I hope to be corrected re: above. I don't have any friends in GS anymore. So I don't have a clue what is their culture and values following the 1MDB debacle. I just hope they have changed their values, improved their KYC (Know Your Client) rules better, be it buying on behalf of the client, or being a research driven initiative to get their clients to buy.
FLC Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
