Citron Research named Mobileye (MBLY) the Short of the Year for 2016 earlier today.
The tweet linked to this article: Elon Musk offered a “multimillion-dollar bonus” for Geohot to build a “Mobileye crushing” Autopilot system for Tesla.
Citron had issued the following report on the company on Sept. 9.
Mobileye: Price Target $25 near term — on the way to $10 — Just Follow the Money
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.
