view transcript

Jim Cramer: Scott W. asks: If Goldman Sachs pops when they report next Monday, would you recommend booking some losses and buying shares in big tech names like Amazon and Apple? My first reaction to that is that's a false dichotomy. The idea that you should do this or that on this is not right. The difference between Goldman and CVS is that Goldman is doing very well under Solomon. This is my old firm, I spent a lot of time working on Goldman ahead of this quarter.

Jim Cramer: Here's what I'll tell you about Goldman. There's two Goldmans. There's this Malaysian thing, I think when I looked at that JPMoragn march, I think Goldman's getting quite the March. It is up four. I expected it to be up eight to ten. That's probably not up eight to ten because of Malaysia. But I would not sell that stock. I would not sell it.

Jeff Marks: JPMorgan talked about how hot all these IPOs are doing for their business.

Jim Cramer: Yeah, capital markets.

Jeff Marks: Yeah. Trading came it. I mean, it was down, but it was better than expected. That's key. I mean, JPMorgan, their profits were incredible this quarter. And, Goldman's been doing well, they've just been held back from this one NDB. We're not hearing those headlines anymore, because Solomon did such a great job last quarter.

Jim Cramer: He did so good. He apologized.

Jeff Marks: He was very apologetic. He really, really switched the narrative on the stock. That's why it's been able to rally. Since the quarter it hasn't, but at least it's back above 200s.

Jim Cramer: Right, and I think that we're trying to buy somewhere tangible, like what 190?

Jeff Marks: Yeah, around that, 193 I wanna say.

Jim Cramer: Yeah.

Jeff Marks: It was around that price.

Jim Cramer: I was with a guy who was a huge shareholder recently, and he was saying to me, look we put through compliance systems ... This is really the issue, by the way ... That are the hardest, most strenuous that there is. Any regulator who looks at Goldman's compliance system versus any others would say Goldman is the pristine, number one marquee. This man has hired thousands of people in his time with Goldman. What he said was, when you're a real crook, it's really hard. A guy who is really a crook can get around compliance, and that's what happened at Goldman. If it was something where Goldman was negligent because they didn't have good compliance, then you really need to be worried. But, they weren't the compliance was good.

Jim Cramer: They have a piece of paper from the head of Malaysia saying this is our deal, we're gonna do with the money. So, what do you do? The president, the guy that runs the Malaysian government gave them a letter that said that this deal was good. That's very tough when everyone's a crook. People can say well wait a second Jim, they had such a big percentage that they made on this, it should have been a red flag. That's the one part that I haven't been able to get my arms around. That's why they're gonna lose some money. But, they're not gonna owe the big money that people think.

Last week, in monthly members-only club call for Jim Cramer's Action Alerts Plus investing club, Cramer was asked about Goldman Sachs (GS - Get Report) by one of the members.

"If Goldman Sachs pops when they report next Monday, would you recommend booking some losses and buying shares in big tech names like Amazon and Apple?" Asked Scott W. 

Cramer responded, "My first reaction to that is that's a false dichotomy."

"The idea that you should do this or that on this is not right. The difference between Goldman and CVS (CVS - Get Report) is that Goldman is doing very well under [CEO David] Solomon," he said. "This is my old firm, I spent a lot of time working on Goldman ahead of this quarter."

This morning, the Goldman Sachs reported its earnings.

Related. Goldman Sachs Is a Good Low-Stakes Bet as It Looks to Shake Things Up

Get Answers to Your Most Pressing Market Questions. Plus, get a sneak peak of what Jim Cramer tells his Action Alerts PLUS members about earnings, investment strategies and more. Click here.

Jim Cramer's Five Rules for Investors During Earnings Season