The Bear Cave #70 + Recent Resignations

New Activist Reports, Recent Resignations, Tweets of the Week, and More!

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New Activist Reports

White Diamond Research published on Wrap Technologies (NASDAQ: WRAP — $362 million), a policing solutions company. White Diamond highlighted that the company’s deployed products are hardly used and that the company’s virtual reality police training is underdeveloped. In addition, White Diamond claimed Wrap could be dropped from the Russell Index later this month. The company responded on Twitter and said the report was “misleading the market.”

Western Edge published a Seeking Alpha article on Golden Matrix Group (OTC: GMGI — $215 million), an online sports betting software company that is up around 400% over the last year. Western Edge accused the company of being a pump and dump and wrote,

“While the company only has two actual employees, there is a catalog of SEC sanctioned individuals and firms that have been involved at Golden Matrix.”

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Recent Resignations and Departures

Notable executive departures disclosed over the last three months include:

• CEO and CFO of Lordstown Motors (NASDAQ: RIDE — $1.67 billion) both resigned less than a year after the company went public through a SPAC merger. Hindenburg Research previously called the company a “mirage” with “fake orders.”

• CFO of Inseego (NASDAQ: INSG — $1.07 billion) resigned “effective immediately” after about eight months on the job. The company has had five different CFOs over the last five years.

• CFO of CrossAmerica Partners (NYSE: CAPL — $747 million) resigned after about nine months. The company has had five different CFOs, three different CEOs, and three different chairmen in the last five years.

• CFO of Novavax (NASDAQ: NVAX — $15.5 billion) resigned after about five months for “personal reasons.” The company has had five different CFOs over the last five years.

• CEO of Tyson Foods (NYSE: TSN — $28.0 billion) departed after about eight months. Tyson has had four different CEOs in the last five years.

• CEO of iRhythm Technologies (NASDAQ: IRTC — $1.89 billion) resigned after about five months.

• CFO of Okta (NASDAQ: OKTA — $30.2 billion) resigned after three months.

• CFO of Domino’s Pizza (NYSE: DPZ — $17.4 billion) resigned after about nine months.

• CFO of Skillz (NYSE: SKLZ — $7.91 billion) resigned after about a year.

• CFO of Rubicon Technology (NASDAQ: RBCN — $24.1 million) resigned after only 37 days on the job. The company has had six different CFOs over the last five years.

Data for this section is provided by InsiderScore.com

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What to Read

“Statement on Commencement of Appointment Process for Five Public Company Accounting Oversight Board Seats” (SEC)

“Individuals interested in being considered for a position as Board member of the PCAOB should submit the following to the Office of the Chief Accountant, at Boardrecommendations@sec.gov, by June 29, 2021.”

“Daniel Kamensky Speaks. Part I.” (Petition)

“Giving in to my anger in that moment has forever changed my life. I hope others can learn from my mistakes….”

“The Hedge-Fund Manager Who Did Battle With Exxon—and Won” (WSJ)

“Christopher James, who once owned a coal mine, was an improbable activist for change at the oil giant. But he was able to convince Wall Street’s biggest money managers to back his thesis.”

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Tweets of the Week

*Walter Bloomberg @DeItaone

*GENSLER: SEC REVIEWING PAYMENT FOR ORDER FLOW RULES

ThomasUBarton @ThomasUBarton1

Every single member of the BOD of $ride should resign. They are directly responsible for the bogus backlog numbers. Are you telling me a short seller can figure out something so simple to confirm and the BOD couldn’t. Typical lazy BOD members that collect money and do nothing.

DaRazor @akramsrazor

The $yala esop plan really is breathtaking. 41.7ml shares granted or basically over 40% of the share count pre-ipo & roughly 30% of today's outstanding shares of which roughly half will be exercisable this month. So, yea its extremely dilutive, but really who cares about that..🧵

Value Investigator @value_invest12

Softbank at an NAV discount of 48.5%. I expect a 185% total return next 3ys from here, largely based on $BABA going up materially higher and the discount closing to 25%. Asset sales + share buybacks over the period would be the cherry on the cake, allowing for a 3x. $SFTBY

Richard Chu @richard_chu97

“I read Barron’s for 50 years. In 50 years, I found one investment opportunity in Barron’s out of which I made about $80M with almost no risk.” – Munger Never feels good to say “no” after a ton of DD but great ideas are rare. Stay open-minded but never compromise your standards!

Terminal Value @valueterminal

When you get 80% of your revenue from 20% of your customers, the "MBA graduate" thing to do is chase the 80% of your customers who are underpenetrated, but the actual correct thing to do is to focus on squeezing more out of the 20% of your customers who are your raving fans

Ian Cassel @iancassel

The smaller the better The more illiquid the better The least institutionally owned the better The more misunderstood the better The less talked about the better You make money by driving through the fears of other investors.

Fritz (Michael Fritzell) @Fritz844

Cheat codes in investing Spin-offs Buybacks Reflexivity Post-reorgs Broken IPOs New products Insider buying New regulation Quality in crisis Competitor exit Index exclusions Merger securities Consumer surplus Value-with-a-catalyst Baby out with bathwater Skepticism about growth

Paul Enright @pmje73

The best ideas are ones where you can see the inevitable while others continue to debate The worst ideas are ones where you think something is inevitable when in reality it’s going to be debatable for a v long time

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Until Thursday,

The Bear Cave

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The Bear Cave is Not Investment Advice. Twitter: @StockJabber