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Following A 1-Week 17% Client-Muppeting, Goldman Removes Sandisk From Conviction Buy List
If you liked it at $83, you'll love it at $66... is apparently the message from Goldman Sachs as last week's transition of Sandisk to the company's "Conviction Buy" list has left clients with a Cramer-esque muppet-hole of around 17% (and rising). One wonders if it is still a conviction buy... or if Goldman should be convicted for selling it to clients...
Goldman on March 17th...
We add SanDisk to the CL given our increased confidence in 2015 S/D and attractive valuation (7% FCF yield) post the pull-back (-18% YTD vs. the SOX +2%).
We see a 34% total return (vs. the semi median of -3%) to our 12-month, $106 price target on:
1) Tight 2015 NAND S/D. Supply: 2H14 NAND SPE orders were very low, implying reasonable near-term supply. Demand: Our checks at MWC suggest the iPhone 6 has helped drive higher NAND per phone at other OEMs.
2) We expect gross margins to expand 400 bps by 4Q15 from the weaker yen, mix, and cost reductions.
3) There could be longer-term upside from SanDisk’s new hyper-scale all flash array product.
Today...
We remove SanDisk from the Conviction List post the negative preannouncement this morning.
Our positive call has clearly been wrong and the timing was particularly poor.
SanDisk negatively revised guidance for the second straight quarter, again due in part to company specific issues. We believe execution will need to improve for several quarters in order for the multiple to re-expand. In addition, the catalysts we identified (such as the May analyst day) no longer hold.
Since added to the Conviction List on 3/10/15, using the intraday price, SNDK is -17% (vs. the S&P +1%).
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let's discuss race !
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Is WTI still on their conviction short list too?
The 'conviction' list of Goldman criminal employees should be long, but it's amazingly short... You basically have to steal from wealthy jews to get on a list like that...
Goldman ARE wealthy jews.
So were Bernie Madoff's clients [if you follow my drift]...
And that's why Bernie is in jail. If he would have ripped off Joe six pack he would be at home sitting on the couch.
Poor Kermie...
Nearly $10 gap DOWN.
Somewhere off in the distance I hear Denninger's voice: 'horsefucked'.
It is a $5.00 commodity stock, nothing more. Competion is a hungry monster for all consumer comodity stocks including Apple which should be $12.00
Sell side blood suckers.
Tech is a giant game of pin the tail on the donkey.......
"Selling April futures at $65...I'm selling, I'm selling!"
We're muppetizing some folks.
I didn't know Sandisk still existed.
your money is not "gone",
it is just someone else has it now
Buy the fucking dip? No wait, the buyer is the fucking dip(shit).
Oops! Sorry muppets!
How much ya wanna bet that there is a "Conviction Buy" list for retail clients and a separate "Conviction Buy" list for institutional clients and that not only are they not identical but are in some cases on opposite ends of the trade.
I bet then, of course, there is the third "Conviction Buy" list which is for prop trading only.
+100 You nailed it! The GS business modus oparandi.
Read GS reports. Do the opposite.
These douche bags always talk their book.
if Sandisk is down does that mean everyone has enough porn storage devices, or theres not enough porn being made to fill them?
Get Ted Cruz's wife who works for the Squid to put some lipstick on this pig!
Before you buy any GS rec, call Greg Smith and ask what he thinks......
"We muppeted some folks!"