🐻The Bear Cave #33🐻
New Activist Reports, Recent Resignations, Tweets of the Week and More
Announcement — Premium Subscriptions
After 8 months of writing The Bear Cave, I am excited to roll out extra content for premium subscribers! The current newsletter is free and always will be, but by subscribing for $34/month you can get two deep-dive reports on companies with serious, unnoticed red flags. The reports will be delivered by email at 10:47am ET on the first and third Thursday of every month.
This project is now my full-time job and your support would mean the world to me.
(You can see some of my past work here, here, and here)
New Activist Reports
Muddy Waters Research published on Nano-X Imaging (NASDAQ: NNOX — $1.27 billion). Muddy Waters highlighted the company’s ties to a convicted felon, questionable partnerships, and wrote,
“We interviewed five radiologists who were familiar with NNOX’s claims. Not a single one expressed credulity of NNOX. Four of the radiologists – without any prompting – compared NNOX to Theranos.”
Citron Research also published on Nano-X earlier this month.
Bonitas Research published on the Chinese hotel management company Huazhu Group Limited (Nasdaq: HTHT — $27.8 billion). Bonitas alleged the company had improper relationships with related parties and produced fake financials. Of note, Huazhu Group has received seven comment letters from the SEC over the last ten years largely concerning internal controls, disclosure, and accounting issues.
Mariner Research published on Canadian electric bus manufacturer GreenPower Motor (NASDAQ: GP — $203 million). Mariner highlighted California subsidies, lack of intellectual property, and a questionable auditor and management team. GreenPower stock is up over 1,000% in the last six months.
The Friendly Bear published a Seeking Alpha Pro article on car-tech company Cerence (NASDAQ: CRNC — $1.76 billion).
White Diamond Research an update on Wrap Technologies (NASDAQ: WRTC — $251) million
Fuzzy Panda Research launched a new website and email list and promised to reveal an exciting short in the near future. Join here.
Prober Reporter published a list of 12 companies with likely SEC investigations based on FOIA responses.
Carson Block Launched zer0es.tv, “the world’s biggest video channel for short-sellers.”
Resignations and Departures
Notable executive departures disclosed this month include:
CEO of Howard Hughes Corp (NYSE: HHC — $3.17 billion) after less than a year on the job.
CFO of Cavco Industries (NASDAQ: CVCO — $1.60 billion) went on leave after less than two years on the job. The company also disclosed he received a Wells Notice from SEC staff “noting that it intends to recommend an enforcement action against him.”
CFO of MSCI Inc (NYSE: MDCI — $29.5 billion) after less than two years.
CFO of Atlas Corp (NYSE: ATCO — $2.15 billion) after about two and a half years.
CFO of HP Inc (NYSE: HPQ — $25.1 billion) after about two years.
CEO of Pilgrim's Pride (NASDAQ: PPC — $3.60 billion) after less than two years.
CEO of GCP Applied Technologies (NYSE: GCP — $1.49 billion) after about a year.
In addition, a board member at Sorrento Therapeutics (NASDAQ: SRNE — $2.46 billion) resigned after less than a year. Trevor Milton, Executive Chairman of Nikola (NASDAQ: NKLA — $7.37 billion) resigned last week, less than six months since going public via a SPAC.
Data for this section is provided by InsiderScore.com
What to Read
“How Nikola Stock Got Torched by a Short Seller” (WSJ)
“Nathan Anderson started publishing skeptical articles about companies in 2017. Within months, he was sued, ran out of money and couldn’t pay his bills.”
“In Manager Selection, Conventional Rules of Thumb are Dumb” (MIT Investment Staff)
“Simply put, in investing we find that most of the best opportunities are found in places where conventional rules of thumb fail.”
“Secret documents reveal potential dark side of prepaid debit cards” (NBC News)
“Some U.S. customers who got prepaid debit cards through Payoneer said they had thousands in cash via their cards in a Belize bank when it failed.”
Tweets of the Week
Until next week,
The Bear Cave