April
19, 2021

4 min learn

This story initially appeared on ValueWalk

ValueWalk will co-host the following Contrarian Convention on April 23 at 9 a.m. Japanese with The Contrarian Investor Podcast and Breakout Level. This time round, Grizzly Analysis and Bleecker Road Analysis will likely be making shows.

Grizzly Analysis

This yr, Grizzly has printed quick reviews on Alpine 4 Holdings Inc (OTCMKTS:ALPP), Nationwide Beverage Corp. (NASDAQ:FIZZ) and DouYu Worldwide Holdings Ltd (NASDAQ:DOYU). The agency has had a superb yr to date and is likely one of the prime short-sellers when it comes to efficiency of the shorts it has reported on.

Alpine 4

Grizzly describes Alpine 4 as a “failed holding firm propelled by the wings of [a] defunct drone firm.” The corporate began as a particular function acquisition firm or SPAC. Its inventory has skyrocketed on “wonderful claims mixed with a record-setting press launch machine” that has churned out greater than 35 releases in solely three months.

Grizzly described Alpine’s administration as “extremely questionable” and emphasised its promotional actions aimed toward driving its inventory worth in what the agency says is a “proverbial pump marketing campaign” by way of the acquisition of Aerospace Corp in November.

The agency added that Aerospace would not also have a manufacturing facility, despite the fact that one was marketed within the acquisition. Grizzly described the enterprise as “nearly non-existent with no verifiable tangible belongings.’

Nationwide Beverage

Grizzly referred to as consideration to the marketing campaign focusing on short-sellers in February, which lifted GameStop Corp. (NYSE:GME) and different shares, together with Nationwide Beverage. The agency believes that rally made Nationwide Beverage a gorgeous quick alternative.

Grizzly heard rumors that brokers have been circulating optimistic notes in regards to the firm to hedge funds, and it believes most of the current consumers do not actually perceive what they purchased. The agency believes that the issues at Nationwide Beverage began with “horrific company governance.”

Chairman and CEO Nick Caporella has been on the board for 36 years, and his son Joseph has been on it for twenty-four years. Moreover, nobody new has joined the board in additional than a decade, and all board members are over the age of 60.

Grizzly accused Nationwide Beverage of “deceptive advertising, alleged dealings with undisclosed associated events and undisclosed insider enrichment.” The agency additionally pointed to allegations of sexual harassment made in opposition to the corporate’s 82-year-old chairman. Grizzly additionally mentioned Nationwide Beverage has a “historical past of alleged monetary manipulation.” In the meantime, its core enterprise is underneath strain, as gross sales of flatlined and competitors has elevated.

DouYu Worldwide Holdings

Grizzly believes DouYu has been concerned with unlawful on-line playing on its platform. Actually, the agency’s analysis means that not solely is the corporate internet hosting these unlawful actions, however additionally it is encouraging customers to gamble on their platform to spice up income. Grizzly additionally famous that one other on-line streaming platform in China just lately launched horrible monetary outcomes because of “structural reform,” and it expects the identical to occur to DouYu.

The agency additionally identified that the corporate selected to not give income steerage for the fourth quarter for the primary time because it went public. Grizzly believes it was because of a weak quarter after the crackdown on lots of its streamers because of unlawful on-line playing. The agency additionally discovered proof of suspected pornography and order brushing, which face extra stringent rules in China, on DouYu’s platform.

Bleecker Road Analysis

Breakout Level says Bleecker Road Analysis is making a comeback, because it hasn’t been energetic shortly. The agency has an impeccable observe document, though its most up-to-date quick reviews have been in 2015 and 2016.

The agency focused Asensus Surgical Inc (NYSEAMERICAN:ASXC), DS Healthcare Group, Inc. (OTCMKTS:DSKX), Sonnet Biotherapeutics Holdings Inc (HOTR), AAC Holdings (NYSE:AAC) and Innovation Prescribed drugs Inc (OTCMKTS:IPIX).

Chris Dose based Bleecker Road whereas he’s nonetheless in school. Whereas at Furman College, he wrote a report on American Habit Facilities, which brought about its inventory to plunge by as a lot as 50%. The corporate filed for chapter final yr.

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