mjmj schreef op 16 sep 2015 om 11:50:
dit vond ik elders:
Mobileye (NYSEL MBLY), a maker of collision avoidance systems for cars, was recently targeted by short-seller Citron Research. In a 13-page report, Citron claims that Mobileye's current valuations are "unfathomable" and that competition from other companies could hurt its growth prospects.
The key facts
Citron claims that Mobileye's trailing price-to-sales of 66 times and its forward price-to-sales of almost 19 (at the time of the report) make it overvalued compared to its projected revenue growth rate of 65% for this year. Citron suggests that the recent hype regarding autonomous cars hitting roads over the next decade has propped up the stock instead of fundamental growth.
The company claims that larger competitors like Delphi (NYSE: DLPH) will eventually outspend and outclass Mobileye, which primarily relies on older technologies like cameras and radars to keep costs low. But according to Mobileye, 90% of leading automakers have signed deals to install its crash avoidance systems in their newest vehicles. Mobileye also claims that its collision avoidance algorithms, not physical products, give it an edge over potential challengers.
Citron also claims that Mobileye's research and development expenses of $56 million over the past 18 months are "minuscule" and insufficient to compete against better-funded rivals. Various insiders and major shareholders have also sold $1.6 billion worth of shares since its IPO at an average price of $33.14, nearly 30% below its current trading price. Saved by automatic brakes?
Although shares of Mobileye declined sharply after Citron's report, the stock bounced back after 10 leading automakers agreed to make AEB (automatic emergency braking) standard on all new U.S. vehicles. The announcement came three months after the NTSB recommended making crash-avoidance systems standard on all new vehicles.
While this means demand for Mobileye's crash avoidance products might rise, it doesn't really address Citron's charges that the stock is overvalued and propped up by hype around driverless cars. Therefore, investors should do their due diligence and fully understand Mobileye's growth potential before picking up shares of this stock.
Read more: Mobileye Gets Slammed by Short-Sellers (DLPH,MBLY) www.investopedia.com/stock-analysis/0...
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