The Bear Cave’s Best of 2021
An annual recap of The Bear Cave’s best (and worst) investigations
In 2021 The Bear Cave published deep-dive critical investigations on 18 public companies for paid subscribers. Of those 18, 16 are currently trading lower: UAVS -89%, CURI -71%, GBOX -69%, YALA -61%, VUZI -57%, NNDM -56%, OPFI -48%, BWMX -44%, SEER -38%, JYNT -32%, PAYO -29%, YOU -29%, SSTI -24%, RDW -17%, PLTK -17%, GOEV -4%, two are trading higher (FLGT +42%, MPW +9%), and the average performance is -35.2%. For comparison, the S&P 500 was up 28% in 2021.
The Bear Cave is focused on exposing companies that are misleading investors or harming customers and covers the qualitative aspects of a company (e.g., are the customers happy? Is the company being fully transparent in its communication with investors?). In addition, The Bear Cave published positively on three companies: Twitter, Otonomo, and Ford. Twitter and Otonomo have performed disappointingly and Ford has doubled.
Some of our favorite articles from 2021 include 1) Problems at AgEagle Aerial Systems (UAVS), a “pioneer in advanced commercial drone technologies” that bought remote-controlled planes and added a GoPro. The chairman’s daughter made a YouTube video that generated retail investor frenzy by hinting at a partnership with Amazon. No partnership ever materialized. 2) Problems at Nano Dimension (NNDM), an Israeli 3D printing company whose CEO had been accused of extortion and whose former chairman had been arrested on charges of money laundering. The company has recently been using its cash to buy companies started by board members and other related parties. 3) Problems at ShotSpotter (SSTI), a gunshot audio detection system used by police departments across the country. The Bear Cave found the company’s product had been used in multiple wrongful convictions and some judges doubted the company’s ethics and efficacy.
Some companies profiled by The Bear Cave in 2021 that may see more issues in 2022 include 1) Playtika (PLTK), a China-backed, Israel-based app developer that may see aggressive user churn because the company has over-monetized its games. User reviews have become increasingly negative, some have formed petitions, and the company could face regulatory and social headwinds. 2) Medical Properties Trust (MPW), a hospital REIT that underinvested in its facilities and could face regulatory pressure for poor medical care delivered by its private equity-backed tenants. Rising rates may also lead to higher debt expenses and a depressed valuation. 3) The Joint Corp (JYNT), a franchisor of chiropractic clinics that engaged in aggressive overbilling and generated significant consumer complaints, may see high levels of customer churn post-pandemic. In addition, underperforming franchisees could begin closing soon due to the company’s haphazard over-expansion in recent years.
Readers opened emails from The Bear Cave over one million times in 2021, and our “Hedge Fund Analyst Christmas List” was our most-read email with nearly 100,000 views. With your help, 2022 can be even bigger.
In 2022, The Bear Cave’s sole goal is to expose the worst corporations and executives on the public markets. You can help us by sending tips (reply to any email), encouraging colleagues to read The Bear Cave, and following us on Twitter @BearCaveEmail.
The Bear Cave will continue its mission of exposing bad actors with a new report on a multi-billion-dollar company tomorrow at 10:30am ET for paid subscribers.
Catch you tomorrow,
The Bear Cave