🐻The Bear Cave #18🐻

New Activist Reports, Tweets of the Week, and Articles to Read

Jun 15, 2020

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New Activist Reports

Night Market Research published on Zynex (NASDAQ: ZYXI — $737 million), a medical device company. Night Market Research wrote,

“Zynex is a parasitic business gouging insurers (and consumers), acting under the pretense of helping in the fight against the opioid epidemic. We see similarities to Philidor in Zynex's minimal R&D, monthly prescription auto-renewals, and routine copay waivers.”

ZYXI stock up 180% year-to-date. Night Market Research also criticized Zynex in a report last year.

The Friendly Bear published on Collegium Pharmaceutical (NASDAQ: COLL — $604 million), a painkiller company with “aggressive and suspect marketing practices” and a drug “that lacks clinical differentiation and is backed by shoddy science.”

Hindenburg Research tweeted that it was short Whiting Petroleum (NYSE: WLL — $162 million):

Hindenburg Research @HindenburgRes

With madness comes opportunity: We are short $WLL because we think its equity is worth less than $0.60. It is simple math: equityholders will only get 3% of the new company plus warrants.

Muddy Water Research tweeted out an anonymous letter alleging fraud at GSX Techedu (NYSE: GSX — $10.3 billion):

MuddyWatersResearch @muddywatersre

More evidence of $GSX massive fraud. This is a pseudonymous letter to Sen @marcorubio . We know who the author is, and they are credible in our view. The conclusions agree with our own.

drive.google.comGSX - Fraud Alert to the SEC Senate Committee 682020.pdf

Citron Research tweeted about Nikola Corporation (NASDAQ: NKLA — $23.1 billion), an electric truck maker:

Citron Research @CitronResearch

$NKLA back to $40 in a month. The anti-Tesla If you buy here you deserve to lose your $$ considering Milton sold just a week ago at $10. When $TSLA had this mkt cap the Model S was scaled and X was produced. There is no real IP at $NKLA and PR's have been overly promo

Last Thursday, The Bear Cave published a report about accounting irregularities and business model issues at CorVel (NASDAQ: CRVL — $1.21 billion).

What to Read

“Short-Seller Who Used Pseudonym to Slam Company Forced Into Open” (Bloomberg)

“A short-seller who used an alias to write a blistering critique of real-estate investment trust Farmland Partners Inc. has identified himself to comply with an order by a federal judge.”

“Investor’s Attack on Texas Real-Estate Lender Boomerangs” (WSJ)

“After earning some $34 million by selling short shares of real-estate investment trust UDF IV, Mr. Bass’s Dallas-based company is under investigation by U.S. securities regulators. They are looking at whether Mr. Bass’s relentless criticism of UDF… conveyed false or misleading statements that amounted to market manipulation.”

“U.S. Investigating Vast Hacker-for-Hire Scheme Traced to India” (Bloomberg Law)

“U.S. authorities are investigating a vast hacking-for-hire operation that involves attempts to pilfer confidential communications from investigative journalists, short sellers and advocacy groups fighting climate change, according to law enforcement officials, court documents and cybersecurity officials who have tracked the scheme for years.”