With nearly 59 million shares short in mid-March, an intra day high yesterday of $24.00 and a 200 day moving average price $16.40-$16.50 someone was bound to put a downgrade in on HP to try and lower the uncovered exposure. Guess Who? None other than G Sucks.
9:15 AM H-P (HPQ) -4.2% on a downgrade to Sell from Goldman's Bill Shope, who also happens to be removing Apple from Goldman's Conviction Buy list this morning. "Sentiment has moved ahead of reality," Shope writes about H-P, while predicting Street estimates for the coming quarters will likely get cut as hardware weakness outweighs any restructuring benefits. H-P was up 65% YTD as of yesterday's close.
HP just downgraded Goldman Sachs from sell to REALLY SELL for the following controversies:
Involvement in the European sovereign debt crisis
Russian consulting agreement
Personnel "revolving-door" with U.S. government
Insider trading cases
Involvement with the bailout of AIG
3.8.2 Final AIG meetings on September 15 at the New York Federal Reserve
Former New York Fed Chairman's ties to the firm
$60 million settlement for Massachusetts subprime mortgages
Abacus mortgage-backed CDOs
Goldman Sachs Commodity Index and the 2005–2008 Food Bubble
SEC civil fraud lawsuit, filed in April 2010
Initial public offering kickback bribes