World of Short Selling

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 #4 - Week 08.11

This episode contains the following;

A look back at Japanese biotech that has not been able to push a single drug to phase 2 in 13 years, and an oil & gas company which pays their investor relations director over 700,000 $ or six times the average.

Tickers & Reports

Muddy Waters on Peptidream (4587.JP)

Culper Research on ProPetro (PUMP)

Note: The IR salary of Sam Sledge is more like 6x than 7x just to be precise. 

 

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)

Episode #2 - Adam Gefvert, CFA

This episode contains the following;

• Adam’s start in short selling during the financial crisis
• Efficient Market Hypothesis (EMH) and small-caps
• Trading in the small-cap space and story of DCGD
• Adam’s Medical Device focus
• Adam’s best short yet, still actionable? – TRXC
• How Adam handles expertise in the medical device space
• Adam’s worst trade – bankruptcy stock
• How Adam deals with short squeezes
• Adam’s edge in short selling
• Short selling opportunity in BSGM
• A possible scam Adam is now researching
• Adam’s thoughts on shorting outside the US
• Adam’s favourite fraud story, short seller and response of the management
• What would be Adam’s business if he were to be a fraudster

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

• Discovery Gold (DCGD)
• Resonant (RESN)
• TransEnterix (TRXC)
• Apyx Medical (APYX)
• BioSig (BSGM) – current favourite of Adam
• Longfin (LFIN)
• ReneSola (SOL) – Adam is currently researching

Finally here is Adam’s Seeking Alpha profile, Twitter and website.

Episode #1 - Week 25.10

This episode contains the following;

A look back at a medical device company that is allegedly overcharging insurers, a biotech that looks like a classic US-listed Chinese stock and a pair of solar companies with dubious business models. 

Tickers & Reports

• Night Market on Zynex (ZYXI)
• Viceroy on Athenexv (ATNX)
• Aurelius on Vivint Solar (VSLR)
• Pedro de Noronha on Sunrun (RUN)

Please note that in the case of VSLR the provision is actually $6.9 million instead of $6.1 million as mentioned in the podcast.