- Past week we have registered two new major short campaigns.
- A newcomer has launched an ambitious campaign against a large IT consulting firm and alleged fraudulent accounting.
- We also look at the developments in GSX. Some activists believe that the past week was just the start of the collapse.
- Lastly, we are tracking the most recent stock price gyrations at a drone company and infamous biotech.
Check out our Q1 Activist Short Selling report here!
Bits and Pieces
- Global PSSL issues first-ever ESG standard on short activism.
- Turkey fines 10 foreign firms for illegal short selling. Fines imposed by capital markets watchdog total $3.25M.
- Are we back to blaming short-sellers? Shares in Deliveroo closed 26 per cent down, with some investors blaming short sellers for the opening plunge.
- The one big short that got away? Hulu recently released a documentary about WeWork just as the company went public through a SPAC, albeit at a much smaller valuation.
This week’s we saw several stocks that moved in the right direction for the short-sellers. The biggest mover was the infamous SOS Ltd (SOS) which dropped about 20% this week. The drone company is the target of Hindenburg and Culper Research. The reason for this drop was a stock offering done well below the market price. Thus the shares quickly sold off. The activists did not release any new updates, but the thesis is likely unchanged. However, the stock has a large retail following which still believes in a huge upside. Thus it will be interesting to see how the situation pans out. The shares are down about the same 20% since the initial reports of the two activists.
On the other side of the tracks, the market has propped up some of the stocks that had otherwise a negative month. A good example of this is Cytodyn which is up about 50% this week. The reason for this is news that the company has filed a new protocol with the FDA regarding its COVID19 treatment. The company also announced it will update the market about all of its activities on the 6th of April.
Aristides Capital and other activists are likely to closely scrutinize this. The shares are well below 40% since Aristides targeted the stock, but initially, the short-seller saw a downside of up to 75%.
Amdocs again in focus
This week we have seen a newcomer target this $10.38bn IT consulting company due to allegations of fraudulent accounting.
Most importantly, the report believes the company has used overseas subsidiaries to overstate...
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* Note: Presented data and analytics is as of available on 2021-04-03, UTC 12:00.
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