Author: Anthonette Clerigo

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Article: Timbercreek Financial (TF) – a tenuous business model with hidden balance sheet risks (50% base case downside)

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Timbercreek Financial (TF) – a tenuous business model with hidden balance sheet risks (50% base case downside)

mariner_admin, 28 July 2020

We believe that the COVID-19 pandemic will accelerate the stresses already hidden in TF’s portfolio and expose TF’s underwriting and financing strategy. We believe that Timbercreek is grossly underprovisioned compared to its small-cap MIC peers – its current loan provision is 73% below the peer average – unusual to say the least. While its peers have taken actions to protect their balance sheets, TF has not, and we believe the dividend is at risk.
In this report, we unveil two large exposures that collectively account for 14% of book value today – we believe they were significantly underprovisioned and that investors were inadequately informed about the issues at these properties – these assets were “sold” in a manner that, in our opinion, allowed TF to avoid taking appropriate provisions (our diligence, presented below, shows these “sales”).
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Article: Market Movers: Facedrive Inc.

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Market Movers: Facedrive Inc.

Braden Maccke, 14 July 2020

Market movers joins the story of Richmond Hill, Ontario based nu-tech platform company Facedrive Inc. (TSXV: FD) just as it finishes a wild Monday, ultimately giving back -$4.92 (-19%) from last week’s $10.14 (+68%) vertical move in a 596,000 share session that landed it at $20.00 flat, after touching $28.00, an intra-day and all-time high.

The 92 million share company has kept tight lines and a clean hull on the boat that is its cap structure, and has trimmed its sails perfectly to capture this market’s strongest trade winds. The company purports to be advancing business units that the market understands, in a manner that socially and ecologically conscious investors and consumers appreciate.
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Article: Novagold says potential class action amateurish, ignorant

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Novagold says potential class action amateurish, ignorant

Cecilia Jamasmie, 10 July 2020

Canada’s Novagold (TSX, NYSE: NG), which is suing short-selling firm J Capital Research (JCAP) for defamation, said a US law firm’s potential attempt to launch a class suit against the company on alleged securities fraud would be based on “malicious and false information”. Lawyers at Hagens Berman and Portnoy said this week they were investigating whether Novagold had misled investors about the viability of its Donlin gold project, in Alaska.

Novagold said the move by San Francisco-based Hagens Berman appeared to be entirely based on JCAP’s “tapestry of deceit” as well as “false and misleading statements” about the company and its 50-50 development partner in the project, Barrick Gold (TSX: ABX) (NYSE: GOLD).
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Article: Novagold slams law firm for ‘malicious and false’ claims on Donlin gold project

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Novagold slams law firm for ‘malicious and false’ claims on Donlin gold project

Nahum Asher, 09 July 2020

According to the complaint, throughout the Class Period, Defendants misrepresented and concealed that (1) ACM Research’s revenues and profits were diverted to undisclosed related parties, and (2) consequently, the company materially overstated its revenues and profits.
Investors allegedly began to learn the truth on Oct. 8, 2020, when J Capital Research published a report entitled “Dirty business,” bringing ACM Research’s reported financials into serious question.
More specifically, J Capital concludes ACM Research is a fraud, over-reporting both revenue and profit. According to the report, “ACMR reports industry-beating gross margins of 47%” but “[w]e believe the real gross margins are half at the best.” J Capital also concludes revenues are overstated by 15-20%, undisclosed related parties are diverting revenue and profit from the company, the key means by which ACMR tunnels over-reported profit out of the company may be through about $20 million in overstated inventory and through cash that is inflated or compromised, and warranty and service costs are understated by at least $11 million.
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Article: NovaGold Investors: Company Investigated by the Portnoy Law Firm

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NovaGold Investors: Company Investigated by the Portnoy Law Firm

GLOBE NEWSWIRE, 09 July 2020

According to the complaint, throughout the Class Period, Defendants misrepresented and concealed that (1) ACM Research’s revenues and profits were diverted to undisclosed related parties, and (2) consequently, the company materially overstated its revenues and profits.

Investors allegedly began to learn the truth on Oct. 8, 2020, when J Capital Research published a report entitled “Dirty business,” bringing ACM Research’s reported financials into serious question.
More specifically, J Capital concludes ACM Research is a fraud, over-reporting both revenue and profit. According to the report, “ACMR reports industry-beating gross margins of 47%” but “[w]e believe the real gross margins are half at the best.” J Capital also concludes revenues are overstated by 15-20%, undisclosed related parties are diverting revenue and profit from the company, the key means by which ACMR tunnels over-reported profit out of the company may be through about $20 million in overstated inventory and through cash that is inflated or compromised, and warranty and service costs are understated by at least $11 million.
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Article: Hedge Funds Are Dumping Cerence Inc. (CRNC)

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Hedge Funds Are Dumping Cerence Inc. (CRNC)

Debasis Saha, 05 July 2020

At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. In this article, we will take a closer look at hedge fund sentiment towards Cerence Inc. (NASDAQ:CRNC) at the end of the first quarter and determine whether the smart money was really smart about this stock.

Cerence Inc. (NASDAQ:CRNC) has experienced a decrease in enthusiasm from smart money in recent months. Our calculations also showed that CRNC isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
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Article: Why Investors Are Talking About Hyliion and Tortoise Acquisition

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Why Investors Are Talking About Hyliion and Tortoise Acquisition

John Rosevear, 28 June 2020

Shares of Tortoise Acquisition (NYSE:SHLL) are on quite a run. The stock ended Friday’s session up 41.2% on the day — and up 140% since the morning of June 19, when it announced plans to merge with a company called Hyliion. The quick run-up has investors asking some big questions. Did I miss something? Is this a scam? Who the heck are these guys?

What is Tortoise Acquisition?
Tortoise is a special-purpose acquisition company, or SPAC, a type of company created specifically to acquire one or more other companies. Sometimes called a “shell company,” SPACs generally have no ongoing businesses of their own. In this case, Tortoise was created by a team of veteran energy-industry executives and investors with the goal of finding and investing in one or more good businesses related to their shared area of interest, renewable natural gas. That’s where Hyliion comes in.
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Article: Hyliion Holdings Corp (HYLN): SHLL is a scam

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Hyliion Holdings Corp (HYLN): SHLL is a scam

investorguru2 , 22 June 2020

SHLL is a scam. Their market cap at 10$ a share is 1.5Billion$ and at 20$ a share, their market cap is 3Billion$. They have a cash of 560 million $. So the current market cap of the Hyliion company is 2.4 Billion$ for a company we have no idea about the revenue or sales. The current float is 23 million shares and they are already sitting on a 80% profit and they are bound to take those profits. Then the shortable shares also would put pressure, then the market makers have incentive to short and the Hyliion management is happy with the 2.4billion $ valuation they have currently. They are not worried about the short term valuation dip that is bound to happen and the price may recover again close to third quarter of 2020 when the merger actually happens if Hyliion can prove that its worth 2.4 billion $. So short term, I am making a bearish case here.
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Article: CNBC’s Jim Cramer says enough is enough: ‘This is the beginning of the end of the selloff’

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CNBC’s Jim Cramer says enough is enough: ‘This is the beginning of the end of the selloff’

Shawn Langlois, 21 June 2020

The stock market was getting beaten up pretty badly midway through Monday’s trading session, with the Dow Jones Industrial Average DJIA, -0.38% down more than 800 points amid rising concerns of another spike in COVID-19 cases in Europe.

But CNBC’s “Mad Money” host Jim Cramer, who has been telling his viewers for weeks to consider locking in profit, doesn’t seem to be too worried about it.

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Article: How Jim Cramer Is Approaching Bank Stocks

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How Jim Cramer Is Approaching Bank Stocks

Katherine Ross, 21 June 2020

A report by the International Consortium of Investigative Journalists found five global banks moved “staggering sums of illicit cash for shadowy characters and criminal networks that have spread chaos and undermined democracy around the world.”

The report said that JPMorgan Chase and Deutsche Bank and other financial services companies had defied money laundering crackdowns even after being fined by U.S. authorities.

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Article: FuelCell Energy Under Investigation for PPP Loan

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FuelCell Energy Under Investigation for PPP Loan

Howard Smith, 19 June 2020

Connecticut-based FuelCell Energy (NASDAQ:FCEL) is being investigated by the Securities and Exchange Commission (SEC) over its acceptance of a $6.5 million CARES Act PPP loan. The PPP program allocated up to $349 billion to help small businesses affected by closures due to the COVID-19 pandemic. The intent was to help the businesses maintain employees on the payroll for up to eight weeks, including providing benefits. Companies were also permitted to use the funds for rents, utilities, and mortgages.

FuelCell Energy is now being investigated over its application for, and acceptance of, a $6.5 million loan in April, according to a Financial Times report. The company said the information request from the SEC was voluntary, and that it is cooperating with the investigation, according to the report.
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Article: Cramer on rampant market speculation: ‘I’ve never seen so many games played with stocks’

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Cramer on rampant market speculation: ‘I’ve never seen so many games played with stocks’

Jesse Pound, 09 June 2020

CNBC’s Jim Cramer cautioned investors on Tuesday to avoid the risky stocks favored by day traders these days amid rampant speculation in the market.

“I’ve never seen so many games played with stocks, which is that, ‘hey, we’re taking this one up today. We’re taking that one up today,’” Cramer said on “Squawk on the Street.”

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Article: 9 FINANCIAL GURUS WHO’VE GIVEN TERRIBLE ADVICE

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9 FINANCIAL GURUS WHO’VE GIVEN TERRIBLE ADVICE

Accounting Degree, 01 June 2020

Many Americans turn to financial gurus for personal finance advice. Twenty-four-hour news stations, online media, and a wealth of financial books have made it easy to tune into your financial wizard of choice. And while there’s a lot of good advice being shared by financial gurus, even the best are bound to slip up at some point. Here, we’ll take a look at financial gurus, some good and some bad, that have at one point given terrible advice to their fans and clients.
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Article: Here’s Why Cerence Stock Crashed on Thursday

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Here’s Why Cerence Stock Crashed on Thursday

Jon Quast, 28 May 2020

Shares of automotive-technology company Cerence (NASDAQ: CRNC) crashed on Thursday after the company announced a convertible debt offering of $150 million. The stock was down by a single-digit percentage for most of the day before falling further in late trading. It finished 16% lower.

Even after today’s pullback, Cerence stock has beaten the market since it was spun off from Nuance Communications in October 2019.
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Article: PharmaCielo rebounds after reporting world’s lowest legal production costs

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PharmaCielo rebounds after reporting world’s lowest legal production costs

Jared Gnam, 21 May 2020

After a March 2 short-seller report sent shares of PharmaCielo Ltd. (TSX-V: PCLO) tanking for nearly two months, the valuation of Colombia’s largest cannabis grower rebounded 36 per cent this week as it posted promising fourth-quarter results. On Thursday, the Toronto-headquartered company said it generated a modest $657K in revenues during Q4, which ranks low among Canada’s publicly-traded licensed producers.

But the parent company of PharmaCielo Colombia Holdings also reported an all-in production cost for dried cannabis of $0.04 per gram at its Colombian operations. That’s the lowest production cost recorded in the legal worldwide weed industry, according to the company.
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THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?