🐻The Bear Cave #48🐻
New Activist Reports, Tips Wanted, What to Read, Tweets of the Week
Welcome to The Bear Cave — your weekly source of short-seller news. If you are new, you can join our email list here.
New Activist Reports
New activist short-seller Kir Khalon published a great report on Nevro (NYSE: NVRO — $5.89 billion), a healthcare company that makes spinal cord stimulators. Five doctors quoted in the report allege the company falsified data and paid kickbacks to doctors that used the product. In an interview about the report, Kir Khalon criticized the medical research supporting Nevro’s product and said the company may face an FDA recall. Follow his new campaigns on Twitter @ScorpionFund
Spruce Point Capital published a “strong sell” opinion on Magnite Inc (NASDAQ: MGNI — $2.81 billion), an online advertising company. Spruce Point alleged the company “[continues] to mask challenges with inaccurate financial reporting” and claimed the company has “dubious management.”
An anonymous letter was published on Blink Charging (NASDAQ: BLNK — $1.58 billion), an owner and operator of electric vehicle chargers. The letter questioned the company’s audit history, use of shell companies, and potentially misleading investor metrics.
Culper Research previously published an excellent report on the company and claimed Blink dramatically overstated the size of its electric charging network and that in-person visits “revealed a plethora of neglected, abused, non-functional, or otherwise missing chargers.”
Blink stock is up around 2,000% over the last 12 months.
*Tips Wanted*
The Bear Cave has some exciting investigations planned for 2021. If you know of any companies misleading customers or shareholders, we are looking for new ideas too. Please hit reply or email edwin@585research.com with any companies that deserve additional scrutiny. The Bear Cave primarily focuses on U.S. companies with market capitalizations between $1 billion and $10 billion.
What to Read
“Problems at Fulgent Genetics” (The Bear Cave premium)
“Fulgent Genetics (NASDAQ: FLGT — $1.62 billion) has rallied around 400% since March as the company has successfully pivoted to creating coronavirus test kits. The market is giving the company an excessive ~$1.3 billion valuation boost on what will be around a ~$550 million one-time benefit from the pandemic. In addition, a series of related party transactions raise concerns about whether the company is being run in the best interest of shareholders.”
“A Simple Way to End Questionable Stock Trading by Lawmakers” (NYT)
“The Securities and Exchange Commission has broad powers that could be used to regulate trades by members of Congress, avoiding the need for legislation….”
“Vons, Pavilions to Fire “Essential Workers,” Replace Drivers with Independent Contractors” (KnockLA)
“California begins to see the devastating effects of Proposition 22…”
Tweets of the Week
Until next week,
The Bear Cave