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Goldman Underwrites MBLY Secondary, Sells 4.6 Million Shares One Day After Upgrade

Tyler Durden's picture




 

Mobileye had a good day on Friday, rallying 4% after a Goldman upgrade to Buy from Neutral with a $50 target, suggesting shares could rally some 25%. Here’s the rationale: 

We upgrade Mobileye to Buy from Neutral following a significant PEG de-rating from its post-IPO peak, which in our view primarily reflects technical factors (expiry of the IPO lock-up in January and news that Mobileye was considering a secondary offering). We continue to believe Mobileye offers exposure to a highly attractive and rapidly expanding market (Advanced Driver Assistance Systems – ADAS), with compelling drivers (automotive star ratings regimes, consumer pull), and a strong ability to capitalise as a low-cost disruptor based on a robust technological edge (see “Disruptive tech, strong positioning, autonomous roadmap; Neutral”, August 26, 2014). As such, we think the current share price provides an attractive entry point given 25% upside to our unchanged 12-month price target of US$50. 

Yes, “technical factors,” like the fact that in January, the company filed to sell up to $500 million worth of shares on behalf of existing holders with Goldman as the lead bookrunner. Of course whether or not Mobileye was “considering” a secondary had nothing to do with Goldman’s decision to upgrade the shares on Thursday, which is why we’re completely confident that today’s secondary announcement with Goldman listed as the lead is just a coincidence, although it is worth noting that Goldman owned nearly 8% of the float going into the offering and will sell 4.63 million shares: 

 

This is reminiscent of Morgan Stanley’s epic Tesla upgrade 24 hours before taking the lead on a convertible note issue back in February of last year and serves as a rather hilarious reminder that the idea of a Chinese wall between investment banking and research is an absolute joke. The bottom line: If you bought MBLY on Friday you have officially been muppetized. 

 

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Mon, 03/16/2015 - 17:19 | 5895573 ThroxxOfVron
ThroxxOfVron's picture

Pump & DUMP.

Mon, 03/16/2015 - 17:21 | 5895578 Killer the Buzzard
Killer the Buzzard's picture

Sorry, if you're dumb enough to buy anything that Goldman reco'd, you deserve what you get.

Mon, 03/16/2015 - 17:29 | 5895607 Save_America1st
Save_America1st's picture

and aren't the big buyers who use the sheeple's money for this stuff the money managers of big pension funds and 401k's?

 

I'm sure most of the muppets have no clue right now that they "own" worthless paper in this stock and in many others. 

I feel sorry for people in long term funds like that right now.  They're never going to see a return by the time they retire in 10 or 20+ years.  It's all going to be wiped out in the end or confiscated...both...same thing...whatever.

I quit contributing to my 401k 7 years ago.  My stacks of phyzz will do just fine when this is all said and done. 

If we live through it, that is.  ;-)

Mon, 03/16/2015 - 17:45 | 5895665 Rainman
Rainman's picture

Imagine the shocked fanboy faces when they discover their Mobileye is tracking their every vehicular movement for the NSA. ... hehehe

Mon, 03/16/2015 - 21:14 | 5896257 TruthInSunshine
TruthInSunshine's picture

Look at the last names listed above; it's like a Temple Gathering FFS.

If you want to commit legal robbery today, getting involved in shit like this is the A Train.

Mon, 03/16/2015 - 23:16 | 5896733 Againstthelie
Againstthelie's picture

And if the last name doesn't work, the first name answers the open question. Amazing list.

Now (stupid goyim corr.) enlightened, well informed and self determined citizen repeat: nothing to see here.

Mon, 03/16/2015 - 17:23 | 5895584 knukles
knukles's picture

Wasn't it some time ago stuff like this was being prosecuted or am I missing something?

Mon, 03/16/2015 - 17:27 | 5895602 813kml
813kml's picture

Bold accusations, GS was just looking out for their valued muppets by making the stock more liquid.

Mon, 03/16/2015 - 17:29 | 5895611 synsolve
synsolve's picture

Sorry, this is sanctioned "insider trading" by the Federal Reserve, the "Justice Department" and the

SEC. You're conflating this (catch that Brian Williams word) with "investors" "traders" and other low life.

Mon, 03/16/2015 - 23:38 | 5896819 chilli sauce
chilli sauce's picture

my roomate's step-mother makes $79 hourly on the laptop . She has been fired for 10 months but last month her pay was $18694 just working on the laptop for a few hours. see here... www.globe-report.com

Mon, 03/16/2015 - 17:23 | 5895586 cheech_wizard
cheech_wizard's picture

Odd, not a single Jewish name on the list...

 

Mon, 03/16/2015 - 17:29 | 5895610 813kml
813kml's picture

That name sounds Irish to me, probably Old Gaelic.

Mon, 03/16/2015 - 17:32 | 5895623 Save_America1st
Save_America1st's picture

not a single name...more like 14 of them.  Oy vay

Mon, 03/16/2015 - 17:25 | 5895592 ebworthen
ebworthen's picture

Wall Street - making a grand living off of the dreams of the little people since 1913.

Mon, 03/16/2015 - 17:28 | 5895604 Unholy Dalliance
Unholy Dalliance's picture

5… 4… 3… 2… 1…

 

It's those filthy jooz what are to blame!!!! Am I right or am I right? Right, right, right!

Mon, 03/16/2015 - 19:54 | 5895981 Dearlydeparted
Dearlydeparted's picture

'It's those filthy jooz what are to blame!!!! Am I right or am I right? Right, right, right!'

Just cut down on the crack consumption now Troll!

Mon, 03/16/2015 - 17:30 | 5895614 Unholy Dalliance
Unholy Dalliance's picture

In case you are to dumb to understand, my last post was a sarcastic jibe at certain, shall we say, STOOPID people posting here! 

Mon, 03/16/2015 - 21:20 | 5896284 TruthInSunshine
TruthInSunshine's picture

Shabbat shalom.

Mon, 03/16/2015 - 17:32 | 5895620 nakki
nakki's picture

We like this stock soo much we want to sell it to you. Greece is a good fit for the EU and these MBS are all AAA rated, trust us really all AAA rated. How bout this we like them so much we'll package them and sell to you. 

Mon, 03/16/2015 - 17:40 | 5895650 Miffed Microbio...
Miffed Microbiologist's picture

Well that company certainly has the Jetson Cool factor. I mean, driving around and your car senses stuff in the road, median barriers,hazard cones? Slap the words " it'll improve safety" on it and it's sure to be a winner. Words like " it's unwise to text while driving" are just too boring and real.

Miffed

Mon, 03/16/2015 - 18:08 | 5895729 RaceToTheBottom
RaceToTheBottom's picture

Sense a pothole, automatically buy some road repair stock.

Sense some rain, buy some raindance stock.

Sense the radio sounding poor buy some Best Buy stock.

All funneled through GS and a touch of Citadel front running....

 

Mon, 03/16/2015 - 17:36 | 5895634 Financial Paparazzi
Financial Paparazzi's picture

GOLDMAN SACHS PLUNGES AFTER ONE BORG... PARDON, BOARD MEMBER ADMITS HE IS HUMAN

Investors fear there could be more humans in the company and demand a 100% Cylon administration.

Source: www.financialpaparazzi.com

Mon, 03/16/2015 - 20:29 | 5896094 Chris88
Chris88's picture

"serves as a rather hilarious reminder that the idea of a Chinese wall between investment banking and research is an absolute joke."

Actually this is the Chinese wall.  Research has no clue what the fuck banking is working on.  If you think the research analysts wanted to look like morons just to "get the muppets" then you're a complete a jackass.  Really, this is just a stupid ass article obviously written by somebody who never dealt with the regulators in research/banking; it's walking on egg shells.  

Mon, 03/16/2015 - 21:25 | 5896301 Downtoolong
Downtoolong's picture

So, what you're suggesting is that Goldman isn't corrupt, just unbelievably stupid?

 

Mon, 03/16/2015 - 22:13 | 5896487 Chris88
Chris88's picture

Suggesting this was intentional is like somebody leaving a bloody murder weapon at a murder scene and carefully pressing their finger prints into the blood then leaving a note with their name and address.  I'm not at all saying the Chinese wall is perfect (i'm a buyside analyst so I don't hold sell side research in high esteem despite me being from a sell side background) but what I'm saying is if you think a supervisory analyst approved this report knowingly and the analsysts did this knowingly with the intention of making themselves look incredibly bad but "screwing over muppets" because this gives GS some amazing power you're just a jackass.

Mon, 03/16/2015 - 21:41 | 5896364 long-shorty
long-shorty's picture

I'm fascinated by this. On the one hand, I don't believe there is such a thing as a credible Chinese wall at a firm. On the other hand, this looks soooo bad/brazen that I kind of wonder if there really was an effective wall here, because if there was not, then the big firms have just given up even trying to look as if they are compling with the law.

From the NY Fed tapes they played on This American Life, the only people "walking on eggshells" at a particular large investment bank seemed to be the regulators.

Mon, 03/16/2015 - 21:54 | 5896412 Shop My Bid
Shop My Bid's picture

Sure......a wall so secure that it could withstand the pressures of internal politics and the head of research to tell him or her to "go rethink your thesis." Don't for a second try to portray research as some bastion of ethics. What you wouldn't do to get your management teams one on one's with the buy side clients who pay you for that access....

Mon, 03/16/2015 - 22:16 | 5896498 Chris88
Chris88's picture

I am buyside now, but I can tell you from being on the sell side that doing NDRS is really not hard when you do a lot of investment banking for the client, even if you have an unflattering rating/price target on the stock.  

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