Citron Lowers Near Term Target to $20: See GPRO and AMBA
The biggest story in the business world over the past week has been Volkswagen’s emissions cheating scandal. But the analysis that has gone overlooked by the media. The looming question not dissected in the press, nor answered by the automotive markets analyst community is not what Volkswagen did, but WHY they did it.
Citron shows how the Volkswagen debacle places in stark contrast the difference between the fantasy Mobileye (NASDAQ:MBLY) targets of the analysts, and the reality for shareholders whose sentiments have been manipulated by the hype.
Citron: Short-Term Target $25 … Long Term Target Below $10
There is NOTHING in the past or present financials, business performance or realistic future technology prospects of Mobileye (NASDAQ:MBLY) that would get it within miles of justifying its current $12 billion market cap.
Mobileye's management is riding the hype cycle of the "self-driving car" story, a decades-long high-stakes technology bet which the operators of this small fabless chip manufacturer know they can never be a serious player in.
Investing in this company is a losing bet on a blue-sky future that just does not exist. This is not merely the opinion of Citron– it is the actions of management who have spoken with their dollars – loud and clear — selling stock more aggressively than Citron has ever witnessed — as documented in this report.
Citron Exposes Wayfair's Admission that their Business is Fatally Flawed!
Wayfair (NYSE:W) makes Citron feel like apologizing to every company we have written about in the past 5 years. Compared to Wayfair, … you all have viable business models. Any analyst who defends this stock is clueless about furniture retailing and even more clueless about e-commerce.
Not a Battleground Stock!
Shake Shack, FitBit, Tesla, Ambarella and GoPro: Each of these stocks has passionate bulls and bears of equal conviction. While each of these stocks sells at nosebleed multiples, each has a disruptive, cult like, or blue sky prospect, which longs and shorts will continue to debate.
Wayfair is not a Battleground! There is no bull case whatsoever for this stock, and Citron proves it.
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?