Helen of Troy Ltd (HELE)
Pitch Summary: Accounting tricks to lift ratio via non-synergetic acquisitions; highly levered balance sheet in the high-interest environment; BSD Analysis: HELE’s brands are struggling with fading pandemic tailwinds, rising input costs, and intense competition. Acquisition-driven growth raises debt concerns, while limited pricing power leaves margins exposed.
Essential Utilities Inc (WTRG)
Pitch Summary: Multiple failed acquisitions and the business is about to decline; growing signs of financial stress and financial reporting issues; no excess capital to meet its dividend obligation; company insiders own 0.17% of the stock; a number of major financial numbers could be false; up to 50% downside; BSD Analysis: Essential Utilities offers defensive […]
Viasat Inc (VSAT)
Pitch Summary: Inferior technology in a hyper-competitive market; all the main points of the bull thesis are flawed; the main business is destined to fall, similar to pagers and pay-phones; burning cash; never generated free cash flow; BSD Analysis: Viasat faces execution challenges in integrating Inmarsat, managing leverage, and sustaining growth in satellite broadband. Short […]
Carvana Co (CVNA)
Pitch Summary: Poorly capitalized; business growth challenged (retail per unit economics are worsening); ridiculously overvalued (42x EV/EBITDA); vehicle sales and revenue must grow at an unrealistic level to justify current price; Update 2/27 – The short seller sent a letter to CVNA’s auditors at Grant Thornton. BSD Analysis: Carvana pulled off a survival act in […]
Carvana Co (CVNA)
Pitch Summary: Hindenburg’s Nate tweeted: We’ve had a flood of 15+ inbounds in the past week asking us to look at potential accounting fraud at $CVNA. More than I’ve ever seen in so short a span of time, many that describe granular red flags. BSD Analysis: Carvana operates an online used car marketplace with a […]
AMC Entertainment Holdings Inc (AMC)
Pitch Summary: Paywalled (The site mentioned: The Bear Cave explores the recent resurgence of “meme stocks,” the players involved, and why AMC is the worst positioned among the hype. In short, The Bear Cave believes AMC is a dead company walking and its promoters are a disgrace for the U.S. public markets.) BSD Analysis: AMC […]
Serve Robotics Inc (SERV)
Pitch Summary: Tweet: Share price pump due to NVDA’s 10% stake, which happened in 2022 with generous terms, and now the lock-up period is expiring on Jul 31st; expensive robots to build, and only 40% is active; AMZN and FDX canceled robot delivery programs due to economics; BSD Analysis: ServiceMaster (facilities/cleaning services) carries short interest […]
Gogo Inc (GOGO)
Pitch Summary: Stagnant business with degrading market share; the technological upgrade is outsourced, which resulted in failure; company’s 5G roll-out is either ludicrously hopeful or intentionally deceptive; During the Q1 call, the company said that 5G roll-out will be much delayed; Starlink is challenging the company’s viability; BSD Analysis: Gogo provides inflight internet services. The […]
Lumen Technologies Inc (LUMN)
Pitch Summary: Secularly declining business; stock gained 400% due to short covering; long history of investor dissappointment; announcing private deals to survive; AI hype; BSD Analysis: Lumen Technologies operates a legacy telecom and fiber network. The bear thesis stresses secular decline in legacy voice/data services, heavy debt load, and limited growth from fiber investments. With […]
Carvana Co (CVNA)
Pitch Summary: Overvalued (trading x8 times higher multiples); $4.8bil junk-rated net debt; declining business; insiders constantly cashing out; potential insolvency risk; the main purchasing party is scaling back from Jan 2025; unnamed ‘mystery’ buyer quitely emerged; risky subprime loans; sham deals; undisclosed SEC investigation; BSD Analysis: Carvana is an online used-car retailer. Bears argue that […]
