The Bear Cave is now offering paid subscriptions! For $34/month paid subscribers receive two deep-dive reports focusing on auditor issues, disclosure issues, SEC comment letters, accounting issues, public litigation, executive turnover, business model issues, and complaints obtained through FOIA requests.
The paywall is temporarily removed from our first paid report on Celsius Holdings (NASDAQ: CELH — $1.63 billion). Our next report highlighting unnoticed issues at another $1 billion+ company will come out on Thursday, October 15.
This is what legendary short-seller Marc Cohodes said about the service:
Edwin Dorsey @StockJabberI just published on Celsius Holdings $CELH – a company like no other. Celsius uses an auditor not used by any other NYSE or NASDAQ company and has ties to indicted 1MDB bankers, Russell Simmons, and a shark from Shark Tank. Full report: https://t.co/s7WlgRcybO https://t.co/etbivtxEG0
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New Activist Reports
Kerrisdale Research published on medical device manufacturer AtriCure (NASDAQ: ATRC — $1.70 billion). Kerrisdale wrote,
“At about 7x forward revenues, AtriCure’s valuation implies that the company’s outlook is brighter than at any point in the last decade. But with the company’s core surgical ablation market almost completely saturated, and the relentless improvements in catheter ablation technology accelerating, AtriCure is facing both rapidly decelerating revenue growth and the threat of technological obsolescence, simultaneously.”
Bonitas Research published an update on the Chinese hotel management company Huazhu Group Limited (Nasdaq: HTHT — $14.0 billion).
The Friendly Bear published a Seeking Alpha article on car-tech company Cerence (NASDAQ: CRNC — $1.78 billion).
Spruce Point Capital published a “strong sell opinion” on solar company Sunnova Energy International (NYSE: NOVA — $2.52 billion).
The Analyst + Sentieo: Best Practices in Shorting Research
(Sponsored) This coming Thursday at 2 pm ET, join Sentieo and The Analyst for this case study and shorting best practices webinar. The participants will discuss The Analyst's SELL rating on NMC Health, a company that filed for bankruptcy earlier this year. The webcast is free and open to everyone. Register here, and, if you cannot make it, you will receive a link to the recording.
What to Read
“Problems at Celsius Holdings” (The Bear Cave)
“Celsius Holdings (NASDAQ: CELH — $1.63 billion) is a company like no other. The company allegedly makes healthy energy drinks and its stock is up nearly 900% in the last five years. Its investors include indicted bankers involved in 1MDB, hip-hop producer Russell Simmons, and a shark from Shark Tank. The company uses an auditor not used by any other NYSE or NASDAQ listed company and has told the SEC it does “not expect that our disclosure controls or internal controls will prevent all error and all fraud.””
“Whistleblower warned EY of Wirecard fraud four years before collapse” (FT)
“EY was warned in 2016 by one of its own employees that senior managers at Wirecard may have committed fraud and one had attempted to bribe an auditor.”
“Silent witnesses: what do three corpses have to do with a corruption case?” (FT)
“Deaths of potential witnesses have alarmed investigators looking into ENRC, the mining house that operates in a dangerous world.”
Tweets of the Week
Edwin Dorsey @StockJabberHi Everyone! I’m launching an email newsletter to help you stay up to date with what’s going on in the short world: new activist campaigns, SEC Enforcement actions, and some exclusive research. It would mean the world to me if you considered joining: https://t.co/8icx2uc1Hx
Until next week,
The Bear Cave