🐻The Bear Cave #32🐻
New Activist Reports, What to Read, Tweets of the Week, and More!
Welcome to The Bear Cave — your weekly source of short-seller news. Feedback and sharing are always appreciated. If you are new, you can join our email list here.
New Activist Reports
Citron Research published on recent IPO Nano-X Imaging (NASDAQ: NNOX — $1.56 billion). Citron called the company, which makes medical imaging devices, a “stock promotion that is insulting to anyone who spends 10 minutes to read the prospectus.”
Viceroy Research published a great 64-page report on the German financial services company Grenke AG (ETR: GLJ — EUR1.56 billion). Viceroy accused the company of accounting fraud, misleading customers, and laundering money for criminals. Viceroy also raised concerns that Grenke could be inflating its cash balances and noted the company has had three different audit committee chairmen since 2018. The stock was down 40% last week and Germany’s market regulator said it was scrutinizing the company.
Mariner Research published on AudioEye (NASDAQ: AEYE — $154 million), a company that makes website accessibility compliance software. Mariner highlighted the company’s ties to Martin Shkreli and other questionable figures.
Hindenburg Research published a follow-up response on Nikola (NASDAQ: NKLA — $12.9 billion), the embattled electric truck company. At about 2 am this morning, Trevor Milton, Nikola’s Executive Chairman and founder, announced he was stepping resigning. In addition, rumors of sexual misconduct by Mr. Milton have been circulating on Twitter (1, 2).
Roddy Boyd, an independent investigative journalist, published a report on Penumbra (NYSE: PEN — $7.44 billion) that links its catheters to patient deaths.
Bucephalus Research highlighted issues at dental distributor Patterson Companies (NASDAQ: PDCO — $2.29 billion).
Whitney Tilson published a short thesis on Lumber Liquidators (NYSE: LL — $599 million).
Announcement Coming Next Week
Stay tuned for a special announcement coming in The Bear Cave next week. I have been working on some very exciting projects and can’t wait to share them with you!
Also, if you are in New York City and would like to meet for coffee please hit reply and we can set up a time (I’ll be wearing a mask). If you want to know more about me, you can read some of my past research here and here.
What to Read
“Remembering my father” (Bill Gates)
“The experience of being the son of Bill Gates was incredible. People used to ask my dad if he was the real Bill Gates. The truth is, he was everything I try to be. I will miss him every day.”
“Why I Broke Wall Street’s Code of Silence” (Institutional Investor)
“When Orthofix crossed my desk seven years ago, a colleague and I spotted irregularities at the medical device manufacturer that reeked of fraud. By that time, the SEC whistleblower program existed, promising anonymity, employment protections, and significant financial incentives.”
“After Wirecard, Ernst & Young Says Auditors Should Focus More on Fraud Prevention” (WSJ)
“Accounting firm sends letter to clients suggesting scrutiny of company books by auditors that goes beyond accepted practice.”
Tweets of the Week
Until next week,
The Bear Cave