How Is This Not Criminal: Goldman Underwrites $2 Billion Tesla Stock Offering Hours After Upgrading Stock To A BuySubmitted by Tyler Durden on 05/18/2016 18:16 -0400
Call it criminal deja vu, all over again: "Morgan Stanley and Goldman, Sachs & Co. are acting as lead joint book-running managers for the offering, with Deutsche Bank Securities, Citibank, and BofA Merrill Lynch acting as additional book-running managers."
Goldman Compares Elon Musk To Steve Jobs And Henry Ford, Upgrades Tesla To "Buy" With $250 Price TargetSubmitted by Tyler Durden on 05/18/2016 07:14 -0400
Just hours after Goldman unexpectedly weighed in bearishly on stocks, tactically downgrading global equities to Neutral over the next 12 months "on growth and valuation concerns" adding that "until we see sustained earnings growth, equities do not look attractive, especially on a risk-adjusted basis" in what some see as a potential upward inflection point in the market now that the biggest taxpayer backed hedge fund is buying what its clients have to sell, Goldman decided to unveil another surprise this time upgrading one of the biggest momentum/growth stocks, Tesla, to a buy with a $250 price target.
Scott Adams - creator of the infamous Dilbert cartoons - believes Donald Trump will win the presidency in a landslide. Trump's "meticulously plotted domination," as Adams explains to The Washington Post, stems from his running on our emotions and sly appeals to our own human irrationality. as the following six points make clear, Adams views Trump as "a master persuader" who will rhetorically dismantle Clinton’s candidacy next.
There is one group of investors who will be closely watching Tesla's results due out tomorrow: the shorts. The reason is that with the stock trading near record highs following a dramatic rebound from the February lows when it plunged to $150, only to rebound back to $250, short sellers have stubbornly refused to step away, and as the chart below shows, short interest remains just shy of record high.
Think back over the last 10 years - how different was your life in April 2006? While you may think your daily existence is largely the same (maybe the kids are older or you’re married now, but that about it…), consider what was actually different about your life in the spring of 2006:No iPhone;No Facebook (unless you were in college at the time); No Twitter; No Instagram; No Kim Kardashian; No Uber; No iPad.
- Shares bounce, euro fades after savage ECB reaction (Reuters)
- Trump's Islam comments draw attacks as Republicans discover civility (Reuters)
- Oil Prices Rise on Hopes Glut Will Ease (WSJ)
- IEA Says Oil Price May Have Bottomed as High-Cost Producers Cut (BBG)
- Why Euro-Area Inflation Will Be Low for Years, According to Draghi (BBG)
- Calmer markets, positive data prime Fed to push ahead with rate rises (Reuters)
That the world's largest hedge fund, Ray Dalio's Bridgewater, just announced the appointment of an hardware engineer, even one as enlightened as former NeXT and Apple executive Jon Rubinstein, should tell you all you need to know about what is really going on in the "market."
No wonder we're devolving into a society of a few privileged haves and a vast populace of marginalized have-nots: the system has failed, but we can't even talk about it.
"To think that Apple won't allow us to get into her cell phone," Trump said on Fox and Friends Wednesday morning. “Who do they think they are? No, we have to open it up." As the Hill reports, Trump argued vehemently that Apple should help investigators crack the phone’s encryption system. "Apple, this is one case, this is a case that certainly we should be able to get into the phone."
While we applaud Cook's rebeliousness, we wonder just how much of it is only for show. After all as Snowden previously revealed, the NSA already has full access to all the iPhone data it needs.
The bottom line is that Apple lost its founder, its leader, its passion, and its way. Get used to a double-digit stock. It's got much lower to go.
The global economy has had its artificial boom and CapEx frenzy already and years of deflationary liquidation and correction lie ahead. Money printing has failed. Any effort by the central banks to double down on another $20 trillion of bond purchases would blow the world’s financial casinos sky high. Contemporary central bankers function like a team of monetary wranglers, herding the retail cattle toward the asset gathers. At the end of the day, the asset gathers will profoundly regret what they are clamoring for.