Bad FORM

With Goldman Sachs wrapping up their fiscal year and the inevitable chatter over the bonus pool about to begin, we would like to remind mere mortals who incessantly type “goldman sachs compensation” into search engines that the folks employed there put their pants on one leg at a time, and occasionally botch a call.

Formfactor, Inc (FORM-NASDAQ) is engaged in semiconductor wafer testing.  Semiconductor capital equipment stocks are notoriously volatile, and have long been a go-to sector for money managers looking to goose fourth-quarter returns. The beta trade indeed.

On September 26th Goldman added FORM to their conviction buy list. We are partial to lists here at UTC.  We love Christmas lists, to-do lists and Blackwell’s worst-dressed lists. We are not sure what a conviction buy list is...but it probably has something to do with buying stocks with Other Peoples Money (OPM).

Today Goldman removed the stock from their list of dubious merit. Investors who followed Goldman’s call got spanked. We will spare them the ignominy of annualizing those returns. That would be mean.

No doubt a 1440 loyalist somewhere lost money on this crappy call. We won’t stand for that.

While we can’t take away the Goldman analyst’s bonus, some type of punishment is in order.

No soup for you, Goldman.

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