Buying Mobileye After $250 Million Announcement
The Intel spinoff is catching investors' attention with a significant repurchase plan.
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Mobileye (MBLY) popped on Thursday morning after reporting earnings, boosting guidance and announcing a $250 million share repurchase program.
Mobileye, for those unaware, is the Intel (INTC) "sort of" spinoff that focuses on developing hardware and software that aids in the ability for vehicles to view and interpret their surroundings. Intel acquired the company in 2017 and still retains majority ownership
The firm's technology, cameras and AI-related capabilities are intended to create "situational awareness for autonomous and semi-autonomous vehicles."
For the period ended March 28, MBLY posted an adjusted EPS of $0.12 (GAAP EPS: -$4.68) on revenue of $558 million. These numbers both beat Wall Street while that sales number was good enough for year-over-year growth of 27.4%.
The deal is this: The firm took a non-cash goodwill impairment of $3.788 billion resulting from Intel's acquisition of the company back in 2017 that was pushed down to Mobileye's balance sheet when Intel took the firm public in 2022.
The firm is guiding toward a full year operating income/loss of between -$4.331 billion and -$4.281 billion. The impairment just taken makes for about 88% of that. Without the impairment, the firm posted positive free cash flow. The balance sheet is strong. There is no debt of any kind on the books. I can see why investors are starting to get interested in this name.
The almost year-long downtrend is obvious:
The inverted head-and-shoulders pattern at the bottom of the chart, which is a bullish signal, is not as easy to see. I want to get the portfolio long MBLY, but not so much on a day that the shares are up 10%.
News Thursday
Light news flow so far for the $10K Portfolio on Thurday morning....
Palantir Technologies ( (PLTR) )
On Wednesday, William Blair analyst Louie DiPalma reiterated his "buy" rating on PLTR without setting a target price. DiPalma upgraded PLTR back in early February and has reiterated his rating twice now since. Blair is rated at four stars out of five by TipRanks, has a 56% success rate over two years, but with an average return of -0.1%.
On Thursday morning, The Fly is reporting that DZ Bank initiated coverage of Palantir with a "buy" rating and a $175 price target. I do not have information at this time on who the analyst is at DZ Bank who is making this call.
Rocket Lab ( (RKLB) )
On Thursday morning, Rocket Lab launched its second dedicated mission for the Japan Aerospace Exploration Agency or "JAXA," further strengthening the existing partnership between Rocket Lab and Japan's national space agency. The "Kakushin Rising" mission lifted off from Rocket Lab's Launch Complex 1 in New Zealand, successfully deploying eight spacecraft for JAXA's Innovative Satellite Technology Demonstration Program. This program includes educational small satellites, an ocean-monitoring satellite, a demonstration satellite for ultra-small multispectral cameras and a deployable folding antenna that can unfurl up to 25 times its size.
SoFi Technologies ( (SOFI) )
On Wednesday morning, SoFi Technologies announced the launch of a new home equity line of credit or HELOC. The new program is rolling out to members, offering the ability to access their home equity through a fully digital, end-to-end process directly within the SoFi platform. In addition, SoFi has also introduced its first real estate advisory council, convening a group of top agents alongside a broader group from top brokerages from across the nation.
Wednesday's Intentions vs Wednesday's Actual Trades
Intention: Sell 25 shares of SOFI at or close to the last sale of $19.29.
Actual Trade: Never got my price. The stock was trading lower by the time of publication.
Intention: Sell 5 shares of RKLB at or close to the last sale of $89.60.
Actual Trade: Sold 5 shares of RKLB at $89.85.
Thursday's Intention
The portfolio is going to initiate a starter position in MBLY just to keep it on my radar. The intention is to beef up the position at lower prices after the algos start taking profits in response to this rally.
Intention: Purchase 25 shares of MBLY at or close to the last sale of $8.68.
Current Positions
Long 50 shares of (EVLV) at $6.0898. Last sale: $6.44.
Long 40 shares of (INFQ) at $12.128. Last sale $13.88.
Long 150 shares of (OCUL) at $8.305. Last sale: $9.64.
Long 125 shares of (ONDS) at $9.4749. Last sale: $10.33.
Long 10 shares of (PL) at $37.18. Last sale: $37.69.
Long 10 shares of PLTR at $141.29. Last sale: $141.29.
Long 10 shares of RKLB at $65.178. Last sale: $85.25.
Long 100 shares of (SIDU) at $2.5492. Last sale: $3.74.
Long 100 shares of (SNAP) at $5.9034. Last sale: $5.65.
Long 150 shares of SOFI at $15.9874. Last sale: $18.56.
Long 40 shares of (VELO) at $10.93. Last sale: $16.30.
Cash: $794.00
Portfolio Value: $11,458.65, +14.6% from inception on March 24.
Related: Asia's Worst Performer Slumps Again as MSCI Refuses to Remove Shackles
At the time of publication, Guilfoyle was long EVLV, INFQ, OCUL, ONDS, PL, PLTR, RKLB, SIDU, SNAP, SOFI and VELO.
