• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Guess Who Was Buying HNZ Stock From Its Clients

Tyler Durden's picture




 

An investment bank having a Sell rating on a stock? Usually an unheard of thing: why alienate the management, why prevent future banking business - it's not like banks are ethical creatures - and sure enough in this particular case, the bank in question had sell recos on just 14% of the stocks in its coverage universe. Which begs the question: what does a Sell rating really accomplish? Well, in this case, and in all such cases, it merely provides the firm's prop, pardon flow, traders the opportunity to accumulate the shares its "clients" are advised by the same bank's sellside group  to Sell, preferably to the bank in question. Who are we talking about? Take a wild guess...

Bottom line: 20% gain for Goldman's prop traders who bought all the HNZ stock they indirectly "advised" their client counterparts to sell to them.

Is it time to buy all other Goldman "Sells" on imminent Buffet takeovers?

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Thu, 02/14/2013 - 11:44 | 3243094 jelyfish
jelyfish's picture

(edit) Wrong thread

Thu, 02/14/2013 - 11:38 | 3243100 Michelle
Michelle's picture

Jeez, this happens all the time, so what's new...

Thu, 02/14/2013 - 11:40 | 3243105 Billy Shears
Billy Shears's picture

I saw your muppet and your muppets dead...

http://www.youtube.com/watch?v=ngimUsQb2_g

Thu, 02/14/2013 - 11:42 | 3243113 JR
JR's picture

The culprit here is the Fed which is owned by banks such as Goldman. And the Keynesian policies and hands off regulations are rubber stamps for transactions like this.

Thu, 02/14/2013 - 12:10 | 3243132 ebworthen
ebworthen's picture

Bingo!

Without the FED providing debt slave (taxpayer) money to prop these crony capitalists and their inside deals - people like Buffet, Kerry, and Blankfein might actually have to work for a living (egads!).

Thu, 02/14/2013 - 11:59 | 3243182 Cone of Uncertainty
Cone of Uncertainty's picture

GS analyst Jason English had a SELL on this stock since 5/31/11 and never changed his rating, so how the fuck can one conclude that GS was scamming its clients?

They fuck clients all the time, but throwing up the latest SELL report and claiming that is the smoking gun for fraud and front running makes no sense.

Had he went from a BUY to a SELL a few months ago, then yeah, you could make that case, but not when the SELL rating has been in place for fucking years.

Fucking donkeys, that is why the average ZH reader is a fucking dolt and a sheep and a smegma licking fuckstick amateur that takes every post here as fucking gospel.

Wake up sheep.

Thu, 02/14/2013 - 12:13 | 3243229 Just Ice
Just Ice's picture

The note appears to have been put out on February 10, 2013...to sell hnz and buy something else.  Regardless, you should've stopped with your third paragraph.  The gratuitous extrapolation expressed in your last two pretty much mirrored what you were complaining about wrt the article.

Thu, 02/14/2013 - 12:22 | 3243266 ebworthen
ebworthen's picture

Eh?

Yes, GS was telling clients to sell, so they could buy more at the lower price, and today - now that it is up 20% - they will be selling what they bought from the clients at $56-$58/share for $72.50/share.

Cha-Ching!

And they were telling clients to sell because GS knew the Buffet/3G deal was coming.

And since 5/31/2011 the stock has gone from $53 to $60 (right before the deal was announced).

So...Jason English screwed GS clients coming and going.

Capiche?

Thu, 02/14/2013 - 13:46 | 3243559 Cone of Uncertainty
Cone of Uncertainty's picture

Ahh, no, again you don't know what the fuck you are talking about because GS ratings for this and all stocks are relative to the sector not the S&P as a whole--read that again RELATIVE TO THE SECTOR.

HNZ underperformed the Food Beverage and Tobacco group significantly the entire time this guy had the sell rating which meant he got it right, but of course, that is a detail your feeble mind can't grasp because you think you are a BSD because you inhabit the Yahoo stock boards.

 

Thu, 02/14/2013 - 15:07 | 3243808 Clowns on Acid
Clowns on Acid's picture

Ummm cone _head - So following your lucid argumnet... HNZ was a Sell RELATIVE TO THE SECTOR....until it wasn't.....

So the GS analyst was right? Only in your universe dude.

Thu, 02/14/2013 - 18:39 | 3244651 ebworthen
ebworthen's picture

Sounds like you sold a bunch of HNZ at $56 and now you are bitter about it (?).

GS issuing recommendations RELATIVE TO THE SECTOR provides a nice smoke screen for inside deals involving single stocks, eh?

Thu, 02/14/2013 - 12:37 | 3243333 Hondo
Hondo's picture

Quit being a clown....If you're so astute then you wouldn't be complaining like a school girl ditched but would have made money like the rest of us...

Thu, 02/14/2013 - 12:14 | 3243244 Herkimer Jerkimer
Herkimer Jerkimer's picture

'

'

'

'

I knew me days were numbered!

 

But that's not me! You got my body double!

 

I'm loose, from the noose!

 

There are @$$‡Ø£#$  and then there is ZeroHedge! A whole bouquet of arseholes you is!

 

I love you!

 

Keep printing the truth! You stand for something that as Orwell said,

 

"In a time of universal deceit - telling the truth is a revolutionary act."

 

Gawd, they must just hate your F@#$ing guts!

•J-<
V-V

Thu, 02/14/2013 - 12:17 | 3243259 bchbum
bchbum's picture

And the govt' is going after S&P for doing what goldman does as part of their business plan?!?

Thu, 02/14/2013 - 12:24 | 3243293 web bot
web bot's picture

Holy #uck you guys are funny! I almost spouted coffee through my nose... the commentary by my fellow heathens are also hysterical... I love the "No Jews were harmed in this operation..."

ZH - what a place to surf and hang. Now back to my client work. Ha ha...

Thu, 02/14/2013 - 12:34 | 3243326 Hondo
Hondo's picture

Doesn't Buffet still own that GS preferred stock???

Thu, 02/14/2013 - 13:05 | 3243411 q99x2
q99x2's picture

Wanted: Osama Bin Blankfeind

Thu, 02/14/2013 - 13:21 | 3243470 hannah
hannah's picture

the rigged market is just too funny now. how much more corrupt can this get....?

Thu, 02/14/2013 - 13:27 | 3243492 lunaticfringe
lunaticfringe's picture

I truly hate these cocksuckers. I simply can't take it anymore. Fear and loathing in America. Grab some sanity here. http://thecivillibertarian.blogspot.com/2013/02/hunter-thompson-had-it-r...

Thu, 02/14/2013 - 14:54 | 3243763 irie1029
irie1029's picture

cool link thanks!

Thu, 02/14/2013 - 13:50 | 3243539 ToNYC
ToNYC's picture

Buffett's next genius move will be to buy the pension-benefit INCREDIBLY pre-paid out of current cash-flow USPS after Goldmen figure a faster way to lay it down. I-95 is on the drawing board.

His bet is controlling the infrastucture and denying Evolution by betting huge on the stallwarts(sic). History is on his side, you get to choose the color of the condiments and select the number of blades in your razor. Then back to his plutocratic plantation for the j-ojob.

Thu, 02/14/2013 - 13:55 | 3243591 CheapBastard
CheapBastard's picture

Flip that Muppet !!

Thu, 02/14/2013 - 15:04 | 3243795 goldenbuddha454
goldenbuddha454's picture

I hear that Miss Piggy likes Goldman's Sack

Thu, 02/14/2013 - 14:36 | 3243708 Keyser
Keyser's picture

Much like the dis-information crew at CNBC. Follow those numpties recommendations at your own risk. 

 

Thu, 02/14/2013 - 15:46 | 3243935 trendybull459
trendybull459's picture

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Thu, 02/14/2013 - 18:21 | 3244568 JiveDadson
JiveDadson's picture

Mr. Durden, google for what "begs the question" means.

Do NOT follow this link or you will be banned from the site!