🐻The Bear Cave #41🐻
New Activist Reports, Notable Resignations, The Bear Cave in the News, and Tweets of the Week
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New Activist Reports
Kerrisdale Capital published on Tattooed Chef (NASDAQ: TTCF — $997 million), a health food company that trades at roughly 7x 2020 revenues. Kerrisdale argued that the company has “extreme customer concentration and flagging retail sales.” The company went public through a SPAC in May and received a 19-point comment letter from the SEC in September.
Muddy Waters published a video and report on Joyy Inc (NASDAQ: YY — $7.01 billion), a Chinese video-based social media platform. Muddy Waters argued that the company’s two platforms, YY Live and Bigo, are 60-90% fraudulent and that most of the revenue realized on the platforms come from company servers, bots, or users round-tripping transactions to themselves. In response, the company said it “is open to cash verification and diligence to be conducted by competent third-party advisers.”
Independent short-seller Marc Cohodes did a Twitter livestream explaining his skepticism of Penumbra (NYSE: PEN — $9.38 billion), a catheter maker whose products have been criticized for poor safety by Quintessential Capital Management. Penumbra’s catheter has been linked to at least 17 deaths.
Citron tweeted critically about ElectraMeccanica Vehicles (NASDAQ: SOLO — $803 million) and Blink Charging Co. (NASDAQ: BLNK — $918 million). Both stocks are up around 1,000% in the last six months.
Resignations and Departures
Notable executive departures disclosed in the last 30 days include:
CFO of Molina Healthcare (NYSE: MOH — $12.3 billion) after less than three years on the job. Molina has had three different CFOs in the last five years and in 2019 the SEC questioned the company about a potential financial restatement.
CFO of Cavco Industries (NASDAQ: CVCO — $1.84 billion) after one and a half years. Cavco has had four CFOs in the last five years.
CFO of Sally Beauty Holdings (NYSE: SBH — $1.30 billion) after less than three years.
CEO of B&G Foods (NYSE: BGS — $1.69 billion) after about one and a half years.
CFO of Marathon Petroleum (NYSE: MPC — $26.4 billion) after about one and a half years.
CFO of Avita Therapeutics (NASDAQ: RCEL — $478 million) after less than a year.
CFO of Veoneer (NYSE: VNE — $2.21 billion) after two years.
CFO of PetroPump (NYSE: PUMP — $611 million) after about six months.
CFO of Colgate-Palmolive (NYSE: CL — $72.5 billion) after about two and a half years.
In addition, the CFO of Asure Software (NASDAQ: ASUR — $120 million) resigned after 87 days “for family health reasons.” The company has had five CFOs in the last five years.
Data for this section is provided by InsiderScore.com
The Bear Cave in the News
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What to Read
“Former Chief Executive Officer And Chief Operating Officer Of Publicly Traded Biopharmaceutical Company Found Guilty Of Accounting Fraud” (SDNY Press Release)
“As the jury found, Parker Petit and William Taylor employed secret agreements and corrupt financial inducements with four distributors to materially misstate the quarterly and annual sales revenue of MiMedx. In the process, they deceived the SEC, auditors, and the investing public, repeatedly misrepresenting the financial condition of their publicly traded company.
“TikTok Mansions Are Publicly Traded Now” (NYT)
“A business trying to make money off mansions full of TikTok influencers has gone public on the stock market through an unusual deal [involving] a former Chinese health care company.”
“Airbnb Executive Resigned Last Year Over Chinese Request for More Data Sharing” (WSJ)
“Airbnb says it declined to disclose more details with China and is transparent with users; former FBI official was told by co-founder, ‘We’re not here to promote American values’”
Tweets of the Week
Until next week,
The Bear Cave