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The Bear Cave #78

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

Edwin Dorsey
Aug 17, 2021
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The Bear Cave #78

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Welcome to The Bear Cave — your weekly source of short-seller news. If you are new, you can join here. Please hit the heart button if you like today’s newsletter and reply with any feedback.


New Activist Reports

Grizzly Research published on TuSimple Holdings (NASDAQ: TSP — $6.26 billion), a Chinese autonomous driving company. Grizzly Research alleged that the company’s founders “have a history of failures” and highlighted that many of the company’s preorders are spurious. Grizzly Research compared TuSimple to Nikola and drew parallels that both firms license key technology from other companies.

Western Edge published a Seeking Alpha article on Amyris (NASDAQ: AMRS — $4.12 billion), a synthetic biotech company up ~300% over the last year. Western Edge wrote,

“The next six months are fraught with downside catalysts for Amyris as the business has, in my opinion, been whittled down to being a glorified and unprofitable cosmetics company… They have burnt ~$245M in core FCF over the last 12 months when excluding their one-time licensing payments. This compares to their latest reported cash balance of $214M.”

White Diamond Research published on Lightwave Logic (OTC: LWLG — $720 million), a revenue-less photonics company that is up ~500% on retail enthusiasm.

Jehoshaphat Research provided an update on its AdaptHealth (NASDAQ: AHCO — $3.42 billion) short:

Twitter avatar for @JehoshaphatRsch
Jehoshaphat Research @JehoshaphatRsch
(1/7) We're updating our $AHCO short with new information that conclusively proves negative organic growth for all of 2021 so far. The opportunity to short AHCO at this level again is incredible: neg org growth confirmed, short interest low, stock back to pre-report levels.
12:39 PM ∙ Aug 11, 2021
11Likes2Retweets

Recent Resignations and Departures

Notable executive departures disclosed in the last week include:

  1. CFO of Agree Realty (NYSE: ADC — $5.13 billion) resigned after about six months on the job. The company has had eight CFO transitions in the last ten years and is audited by Grant Thornton. Agree Realty’s new interim CFO is 29 years old.

  2. CFO of Enstar Group (NASDAQ: ESGR — $4.68 billion) also resigned after about six months on the job. The prior CFO departed after only three years.

  3. CFO of SailPointTechnologies Holdings (NYSE: SAIL — $4.11 billion) resigned after a little over two years. The company’s auditor is Grant Thornton.

  4. COO of SeaWorld Entertainment (NYSE: SEAS — $4.19 billion) resigned after less than two months “for personal reasons effective immediately.” The company has had five different CEOs, three different CFOs, and three different Chairmen over the last five years.

  5. Chief Underwriting Officer of Argo Group International (NYSE: ARGO — $1.95 billion) was terminated after a little over a year “as part of the Company's efforts to continue to streamline management and reduce expenses.”

  6. A director of FIGS Inc (NYSE: FIGS — $6.65 billion) resigned after two months “effective immediately.” The company went public in May.

  7. Two audit committee board members of Arco Platform (NASDAQ: ARCE — $1.53 billion) resigned after less than two years as part of “a renewal process initiated in the beginning of the year to promote new insights on the business environment.” The company has also had three different CFOs over the last two years.

Data for this section is provided by InsiderScore.com


What to Read

“Xi’s Dictatorship Threatens the Chinese State” (George Soros WSJ Op-Ed)

“In his quest for personal power, he’s rejected Deng Xiaoping’s economic reform path and turned the Communist Party into an assemblage of yes-men.”

“PureCycle Technologies: The Nikola of Recycling” (Funny Business Substack)

“PureCycle Technologies Fails to Address Short Seller Allegations; More Red Flags Surface”

“A Skeptical Stock Analyst Wins Big by Seeking Out Frauds” (NYT)

“The activist short-seller behind Hindenburg Research has become known for research that sends companies’ stock sinking. He says he’s not in it just to move share prices.”


Tweets of the Week

Twitter avatar for @Post_Market
Post M. @Post_Market
If Casper can't make money in this housing market, with consumer balance sheets as healthy as ever and mix benefitting home category.... then when? Cash burn of $40M YTD. But don't worry the CEO is a board member of not one but two SPACs.
3:22 PM ∙ Aug 10, 2021
485Likes15Retweets
Twitter avatar for @GothamResearch
Gotham City Research @GothamResearch
If we think $YALA share price goes to $2/share, and shares are currently $11/share, Which inning are we in?
Twitter avatar for @GothamResearch
Gotham City Research @GothamResearch
$YALA reminds us of Let’s Gowex and Luckin Coffee $LK. We are short $YALA.
4:51 PM ∙ Aug 10, 2021
Twitter avatar for @AndrewRangeley
Andrew Walker @AndrewRangeley
Comparing $KPLT Q1'21 commentary (from mid-June!) to their Q2'21 commentary yesterday is comical. Includes the single worst excuse for missing guidance I've ever seen. "We had a great sales pipeline... but all of their IT staff quit to work from home so we couldn't roll out"
Image
2:00 PM ∙ Aug 11, 2021
33Likes2Retweets
Twitter avatar for @IcebergResear
Iceberg Research @IcebergResear
$EOSE crashes 20% after booking only $612k for the quarter. It has always been an inferior battery product saved from bankruptcy by the SPAC phenomenon.
2:15 PM ∙ Aug 11, 2021
Twitter avatar for @Post_Market
Post M. @Post_Market
If an aspiring analyst wants a job at a real shop, I'd reccomend they do some real work on any of the new IPOs or de-SPAC names. It's pretty evident nobody is doing the work because there is just too much of it.
3:22 PM ∙ Aug 13, 2021
415Likes15Retweets
Twitter avatar for @StockJabber
Edwin Dorsey @StockJabber
Just FYI there are a ton of "marketing firms" offering people on FinTwit $$$ to tweet and write about stocks. I have been approached a number of times (always declined) and would love to see more transparency around who is getting paid and what is being promoted.
9:55 PM ∙ Aug 16, 2021
303Likes28Retweets
Twitter avatar for @chatwithtraders
Chat With Traders @chatwithtraders
NEW · Critical Reporting—A Good Guy Flagging Bad Companies w/ @StockJabber 🔊 cwtrd.rs/ep-219
cwtrd.rs219 · A Good Guy Flagging Bad Companies | Edwin DorseyEdwin Dorsey’s an individual investor, passionate about exposing bad companies. Through well-researched, off-the-beaten-path ideas, Edwin has rapidly earned credibility for his critical reporting and analysis—as well as his commentary and knowledge of general activity within the short world.
12:10 PM ∙ Aug 11, 2021
39Likes4Retweets

Until Thursday,

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