World of Short Selling

Episode #12 - Week 10.01

This week I am going to look at three campaigns.  

One will be about none other than Tesla and the lengthy report done by Plainsite, the docket site run by Aaron Greenspan.

The other short will be from Black Mamba who targeted Varta AG, a German maker of batteries used in earphones such as airpods.

Lastly, I will provide a short update on Triple-S management, the short of Friendly Bear.

I would also like to thank Breakout Point for data that I used in preparation for the podcast. Breakout Point is a great platform for those interested in tracking ongoing short campaigns.

If you want to ensure that you do not miss any new activist campaigns or any updates to already published reports, be it SEC filings, new tweets by short-sellers or press releases by the targeted companies, do take advantage of my 10% discount code for the first two months for a subscription to Breakout Point.

You can claim it by going to breakoutpoint.com and subscribing with the code ‘podcast’. Affordable and flexible subscriptions provide a complete and timely overview of what is happening in activist shorting.

Tickers & Reports

• Plainsite on Tesla (TSLA)
• Black Mamba on Varta AG
• Friendly Bear on Triple-S Management (GTS)

Episode #11 - Adam Block

This episode contains the following (rough timestamps);

0.15 Start in short-selling and Big Short

5.00 Background in bankruptcy and fraud litigation

9.30 Focus on two and three sigma ideas  

15.30 How people misinterpret MLPs

18.00 Stanford International Bank – Ponzi with larger losses than Madoff  

31.00 Learning Lessons – Be aware of your dividend yield  

34.30 Sourcing ideas from others

37.30 Unserviceable debt and shorting oilfield services

53.00 Who is Adam following?

59.30 Worst trades – Do not argue on valuation

1.06.00 Worst trades – Anticipate short position doubling on you

1.11.15 Timing and sizing

1.18.00 Mallinckrodt (MNK) – Potential zero with catalysts in 2020

1.30.00 McDermott (MDR) – Example of trading near-bankrupt company  

1.36.00 Options trading

1.42.00 Did Adam Neumann know WeWork is dubious?

1.45.00 What would Adam do differently if he started again?

Finally here is Adam's Twitter and Seeking Alpha page. 

Collecting Feedback

Hello, 

I want to make sure I keep on making the podcast better. Therefore I am collecting anonymous feedback through this form (just 5 easy questions) - https://forms.gle/3JpM3Tb7uXCEaxWJ7

Thank you for helping me to improve! 

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Episode #9 - Week 06.12

This week’s episode is going to include a great contrast between the short targets.

On one hand, we will see a complex target composed of a Canadian retailer that is facing several fundamental issues. This could lead to credit downgrade which should present a downside.

On the other hand, we have my favorite biotech, Enochian Biosciences whose head scientist pleaded guilty to commercial burglary and is a support of the Spoon Bender, a magician who allegedly can bend spoons with his mind. Over the past two weeks, White Diamond Research found new information that makes ENOB the craziest and most overvalued biotech that WDR has ever seen.

I would also like to thank Breakout Point for data that I used in preparation for the podcast. Breakout Point is a great software tool for investors interested in tracking ongoing short campaigns.

Tickers & Reports

• Spruce Point on Canadian Tire Corp. (CTC)
• White Diamond on Enochian Biosciences (ENOB)
• Blue Orca on Kasen (HK.0496)

Episode #8 - Gabe Bernarde (Viceroy Research)

This episode contains the following (rough timestamps);

0.15 How did Gabe start at Viceroy through PI work

6.00 Difference in fraud across geographies

7.10 Gabe’s specific focus  

8.10 Sourcing of ideas  

9.10 Being CC’ed to consumer complaints

10.10 Screening of ideas

13.00 Decision-making regarding publishing a report

15.10 Dreaded timing of short selling

19.00 Best and worst trade

24.00 Instagram feed and fake-wig test

28.20 Athenex (ATNX) and why is still a short 

51.50 Pretium (PVG) thesis also holds

56.00 Prosieben (PSM) has likely played out, but the business model is still questionable 

58.00 Capitec (CPI) potentially one of the most abusive financial institutions

64.40 Shorting outside of US – The German experience and scare tactics against critics

71.00 Closing remarks on Mimedix (MDXG)

72.40 Shorting after the first major drop

82.50 Who calls Gabe – Gabe from Spiceboy Research 

84.00 The most ridiculous response of the management

88.00 Why the name Viceroy?

89.00 What would Gabe do differently if he had to do it all over again?

Finally, here is Gabe’s Twitter and Viceroy’s website.

Episode #7 - Week 22.11

This episode contains the following;

This week I am going to look at the carnage that happened at Kasen, an alleged complete Chinese fraud, US-listed Chinese biotech that is likely lying about their facilities. A Puerto-Rican holding company whose insurance subsidiary is likely insolvent.

Last but not least, I will highlight a campaign targeting US-listed biotech whose head scientist is apparently Nikola Tesla, Leonardo Da Vinci, and Einstein in one person. He also believes people can bend spoons with their minds. I really recommend listening to the whole podcast just to hear this incredible story.

I am not going to look at Tesla although that presentation was certainly another piece of gem into the hall of TSLAQ.

Tickers & Reports

Blue Orca on Kasen (HK.0496)

Viceroy on Athenex (ATNX)

Friendly Bear on Triple-S Management (GTS)

White Diamond Research on Enochian Biosciences (ENOB)

Episode #6 - Week 15.11

This episode contains the following;

This week I am going to look at the continued effort of Viceroy over at ATNX biotech with alleged poor product pipeline and insiders which allegedly siphon cash out of shareholders of ATNX.

I will also highlight a new campaign of Spruce Point which is targeting an SP500 company and alleging fraudulent business practices. This could serve as a strong catalyst for the thesis.

Lastly, I will talk about Culper’s campaign on ProPetro, an oil & gas company that is mired in an SEC investigation that does not seem to be going the right way. PUMP is the company which pays their investor relations director six times the average salary, he is the son of the COO.

Tickers & Reports

Viceroy Research on Athenex (ATNX)

Spruce Point on Cintas (CTAS)

Culper Research on ProPetro (PUMP)

Episode #5 - Ian Bezek

This episode contains the following (rough timestamps included);

0.30 How Ian got a job at Kerrisdale

5.00 Short-selling as a generalist

7.30 What would he do more of if he stared all over again

9.00 Sourcing short ideas through looking for longs

13.00 What is the advantage of smaller short-sellers

17.00 Timing and crowded trades

18.00 Best and worst trade – Argentina

24.30 Research focus and Twitter

25.55 Shorting Solar in 2019

28.20 Shorting boring consumer stocks

32.00 Ian’s current favourite short sector

35.00 Gamestop and other ‘perennial long ideas’

37.00 Timing in retail

40.00 Antero Resource short

46.30 Sourcing of ideas - Strange financing arrangements

49.30 Blue Apron short

53.00 Shorting fads – bitcoin example

57.00 Accounting red flags – Adjusting EBITDA

60.00 Ian’s favourite accounting gimmick

62.00 Ian’s favourite fraud story

64.00 Downside of being a perma-bear and short-only

66.00 How this reflects in the short-selling funds

68.00 US/Europe Governments reaction

70.00 Positing a big short – financial crisis

Below you can find tickers of companies we discussed and are still trading;

• Antero Resource (AR)
• Blue Apron (APRN)
• Gamestop (GME)
• Procter & Gamble (PG)
• Sunrun (RUN)
• Vivint Solar (VSLR)
• Church & Dwight (CHD)
• Tesla (TSLA)
• Nova Lifestyle (NVFY)

Finally here is Ian’s Seeking Alpha profile and Twitter.

Episode #3 - Week 01.11.

This episode contains the following;

This week I quickly note the new campaign of Spruce Point, look at a solar-related company that might be stuffing their channels and a hot new IPO steered by a person who oversaw the bust of Pets.com, a poster child of the dotcom bubble.

Last but not least, I talk about a used car company that is making more money on selling loans than cars and is burning cash despite revenue increases.

Tickers & Reports

Spruce Point on Hill-Rom (HRC)
J Capital Research on Enphase Energy (ENPH)
Value Digger on RealReal Inc. (REAL)
Spruce and Advantage Investor on Carvana (CVNA)