A Note to Cramer and his viewers:
Citron wants to clear up the misunderstanding involving references to Cramer. In an August 2012 video we linked, Cramer stated he was obsessed with Mellanox. The following month, following the CFO resignation, Cramer changed his position and put Mellanox in his “sell block”. Investors who heeded the call were spared losses.
The point of Citron referencing this story was not meant to lay blame with Cramer for anyone who lost money on a random stock in 2012. Rather we meant to illustrate that the the points of that original buy recommendation for Mellanox are essentially the same as his reasons for recommending Ambarella.
Citron has great respect for Cramer — in this case, he clearly used his judgment to withdraw his buy recommendation on Mellanox and shutter it in his"sell block" before most of its reversion. Citing Mellanox in our report was never intended as criticism of Cramer. Citron was just trying to contextualize the run up in Ambarella stock.
Citron Explains “Ridiculousness” — Read and heed Ambarella's disclosures
One month ago, when Ambarella’s (NASDAQ:AMBA) stock hit $125, Citron Research published a thoughtful note about the overdone run-up in Ambarella stock, pointing out how investor enthusiasm had become detached from reality. As the stock sold off to levels, which were still inflated, but less ridiculous, a gaggle of pundits started to pound the table. Citron recommends investors read what the company discloses about its own business.
TrueCar and Bankrate Tell Us how Wall Street Values Lead Generation Businesses
Citron Research has been skeptical of Zillow (NASDAQ:Z) for some time now. We first reported on the company in 2012, with frequent updates. Three years later, with no real profits to show and endless amounts of insider selling, plus round after round of lowered guidance, Citron believes that this sucker is finally ready to break, as the company has run out of tricks and finally has to show profits.
The only question is how low will it go?