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Following A 1-Week 17% Client-Muppeting, Goldman Removes Sandisk From Conviction Buy List

Tyler Durden's picture




 

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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Thu, 03/26/2015 - 13:28 | 5930126 SethDealer
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let's discuss race !

Thu, 03/26/2015 - 23:07 | 5932416 one_hundred
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I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Thu, 03/26/2015 - 13:30 | 5930133 Glass Seagull
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Is WTI still on their conviction short list too?

Thu, 03/26/2015 - 13:33 | 5930145 Thirst Mutilator
Thirst Mutilator's picture

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...

Thu, 03/26/2015 - 13:46 | 5930208 ShorTed
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Goldman ARE wealthy jews.

Thu, 03/26/2015 - 14:02 | 5930287 Thirst Mutilator
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So were Bernie Madoff's clients [if you follow my drift]...

Thu, 03/26/2015 - 14:22 | 5930367 Osmium
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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.

Thu, 03/26/2015 - 13:31 | 5930138 Vol_so_Hahd
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Poor Kermie...

Thu, 03/26/2015 - 13:32 | 5930148 ThroxxOfVron
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Nearly $10 gap DOWN.

Somewhere off in the distance I hear Denninger's voice: 'horsefucked'.

Thu, 03/26/2015 - 13:41 | 5930187 blindfaith
blindfaith's picture

 

 

 

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

Thu, 03/26/2015 - 13:36 | 5930165 Chuck Knoblauch
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Sell side blood suckers.

Thu, 03/26/2015 - 13:38 | 5930179 KnuckleDragger-X
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Tech is a giant game of pin the tail on the donkey.......

Thu, 03/26/2015 - 13:54 | 5930248 SillySalesmanQu...
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"Selling April futures at $65...I'm selling, I'm selling!"

 

                  We're muppetizing some folks.

Thu, 03/26/2015 - 14:03 | 5930294 _ConanTheLibert...
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I didn't know Sandisk still existed.

Thu, 03/26/2015 - 14:03 | 5930296 JimmyRainbow
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your money is not "gone",

it is just someone else has it now

Thu, 03/26/2015 - 14:03 | 5930298 SloMoe
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Buy the fucking dip? No wait, the buyer is the fucking dip(shit).

Thu, 03/26/2015 - 14:35 | 5930423 Soul Glow
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Oops!  Sorry muppets!

Thu, 03/26/2015 - 14:49 | 5930481 philosophers bone
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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.

Thu, 03/26/2015 - 16:33 | 5930952 koncaswatch
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+100 You nailed it! The GS business modus oparandi.

Thu, 03/26/2015 - 15:19 | 5930592 orangegeek
orangegeek's picture

Read GS reports.  Do the opposite.

 

These douche bags always talk their book.

Thu, 03/26/2015 - 15:48 | 5930713 Rootin' for Putin
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if Sandisk is down does that mean everyone has enough porn storage devices, or theres not enough porn being made to fill them?

Thu, 03/26/2015 - 17:05 | 5931131 Chippewa Partners
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Get Ted Cruz's wife who works for the Squid to put some lipstick on this pig! 

Thu, 03/26/2015 - 17:06 | 5931141 Chippewa Partners
Chippewa Partners's picture

Before you buy any GS rec, call Greg Smith and ask what he thinks......

Thu, 03/26/2015 - 20:15 | 5931875 Dead Canary
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"We muppeted some folks!"

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