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Is Goldman Sachs the next Allergen, are we about to get hurt again, are we about to hurt you again? First, if Allergen is a stock that is going down and Goldman Sachs is a stock that is going down, then yes, they are very much the same.

Jim Cramer: Goldman Sachs, like Allergen, has been going down regardless of how the other companies are doing in its sector, regardless of what the Fed's going to do today, and I think the Fed's going to tighten, and I think the Fed's going to give you a statement that's good for the banks. Goldman, like Allergen, has lost people money if they bought it when we did, our first buy was at $259. It is now at $233.55, not horrendous, but not good. That's pretty much where the similarities in my mind end though. Allergen was a not-great healthcare company that got a takeover bid, and we decide to hold it to get the full price that was offered. That was, in retrospect, very wrong. We have only one sense kept the takeover name on the sheets, and that was ANXPI, which we ended up selling after Elliot Partners got Qualcomm to raise its bid $17.50.

Jim Cramer: If you want to, you can look at I think a great interview, a little self promotion, that I had with Paul Singer from Elliot last week at our corporate governor's conference. Anyway, we bought Goldman Sachs not for a takeover, but because it was the best of breed, yet it was selling at a big discount to the average stock in the market and to its own sector. That's quite rare, I thought it was mispriced then at 259, our first buy, $16 from the high. We waited, we waited, which in itself showed a degree of discipline because, well, it had gone lower. I knew it wasn't a can't-miss situation, but I figured that buying Goldman Sachs 11.5 times earnings down nicely from its high is such an opportunity when the average stock was selling at around 19 times earnings, that we had to pull the trigger.

Jim Cramer: I didn't know how low it could go, I wanted to get started. Goldman, unlike Allergen, has a rock solid balance sheet, and while it reported an upside surprise not that long after, as did Allergen, the magnitude was huge versus expectations for Goldman. Goldman posted its best return on equity in five years, that's the most important statistic for a broker. It's a sign that the business had taken a huge step forward, not backward. It had a big improvement in fixed income commodity trading, so key for this company. It had the usual fabulous private wealth numbers, a division that I came from, so I know where of I speak. The one fly in the ointment was that the company did not announce a buyback, and that was an oddity for the group, but I knew that it was facing a tough seat car Fed from view, and there was no reason if it didn't want to to be right in the face of the Fed, if it felt like a big buyback could cause any sort of hesitation on the part of the Feds for being given a clean bill of health, which is vital to the Goldman story.

Jim Cramer: Now while disconcerting, and it was disconcerting, because I thought they would do a buyback, it was explained away as something that would happen at the end of this month after the review comes out. Wasn't point blank, it was sort of [inaudible 00:10:17], but that's how I read it, and I still believe it'll be the case now more than ever.

What do Goldman Sachs Group Inc. (GS - Get Report) and Allergan plc (AGN - Get Report) have in common? Not a whole lot, despite the naysayers, Jim Cramer said in the June Action Alerts PLUS members' call.

"Goldman, like Allergan, has been going down, regardless of how the other companies are doing in its sector," said Cramer, who is the founder of TheStreet and the portfolio manager for Action Alerts PLUS.

"But that's pretty much where the similarities end," Cramer noted. 

Cramer's team bought Goldman because it was a "best of breed" stock selling at a steep discount to the rest of its sector. Plus, Cramer said it has a "rock solid" balance sheet and recently reported its strongest return on equity in five years.

Allergan, on the other hand, lacks the same fundamental strength and was a "not-great" healthcare company when it got a takeover bid from Pfizer Inc. (PFE - Get Report) . Cramer's AAP team sold its last remaining position in Allergan last week, he said.

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