Author: Anthonette Clerigo

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Article: Dollarama shares drop after short-seller says ’broken growth story’ could tumble 40%

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Dollarama shares drop after short-seller says ’broken growth story’ could tumble 40%

Svea Herbst-Bayliss, 31 October 2020

BOSTON — Spruce Point Capital Management, which focuses on in-depth research of companies’ vulnerabilities, sees room for Dollarama Inc’s stock price to tumble roughly 40 per cent after the Canadian retailer raised prices and fewer customers are shopping at its stores. “Spruce Point believes Dollarama is a ‘strong sell’ with an approximately 40 per cent downside risk,” Ben Axler, who runs the hedge fund, said at an investment conference on Tuesday, according to a person familiar with his presentation. He examined the company’s products, pricing and what he called “troublesome management and governance red flags.”
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Article: Why Dollarama Is A Broken Growth Story And We See 40%+ Downside Risk

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Why Dollarama Is A Broken Growth Story And We See 40%+ Downside Risk

Ben Axler, 31 October 2018

Spruce Point believes that Dollarama (TSX: DOL / OTC: OTC:DLMAF or “the Company”) is now a broken growth story that will fail to hit its lofty long-term growth targets, placing its industry-leading margins and valuation multiple at risk of material contraction. As a result, we see ~40% downside risk to C$24.60 per share.

Rising product prices, progressively saturated markets due to heightened competition, and increasingly stale stores out of touch with Millennials have caused per-store traffic to contract for several years as consumers realize it is no longer a true dollar store. The Company is on pace for its lowest new store count in years despite management’s continued efforts to expand the store base. Dollarama’s gross and EBITDA margins are inexplicably high relative to peers, and seem too good to be true. Management also claims to have never closed a store for performance reasons. We expect growth and profitability expectations to fall back to reasonable levels as a number of fundamental factors – tougher competition, wage increases, FX, and logistics costs, among others – pressure the business going forward.
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Article: Lakewood’s Anthony Bozza Recommended Shorting Three Pot Stocks at Robin Hood

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Lakewood’s Anthony Bozza Recommended Shorting Three Pot Stocks at Robin Hood

Joshua Fineman, 30 October 2018

(Bloomberg) — Lakewood Capital Management LP’s Anthony Bozza recommended shorting Tilray Inc., Canopy Growth Corp., and Aurora Cannabis Inc. at the Robin Hood Investors Conference in New York City, according to a person with knowledge of the presentation. Two of these companies, Canopy Growth and Aurora Cannabis, were named new shorts by Lakewood in their fourth-quarter letter to clients in January.

Bozza said that it’s not a matter of if, but when these pot stocks collapse. Tilray shares have reversed about 9 percent for the day’s peak, turning negative around the same time that Bozza was scheduled to present at RobinHood.
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Article: Manulife faces backlash from investors over failure to disclose court case

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Manulife faces backlash from investors over failure to disclose court case/

Matt Scuffham, 13 October 2018

TORONTO (Reuters) – Canada’s biggest life insurer is under pressure from shareholders to explain why it failed to disclose details of an ongoing court case which came to light after a short-seller released a report detailing the litigation. The stock has dropped 11.5 percent since Muddy Waters Capital LLC said last week that it had taken a short position, compared with a 4.7 percent decline in the stocks in Canada’s financial sector. Muddy Waters cited a court case pending in the Canadian province of Saskatchewan it believes could damage Manulife’s financials. The case against Manulife was filed on Nov. 23, 2016 by Mosten Investment LP, managed by Ontario businessman Michael Hawkins, documents submitted to the court show.
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Article: Manulife clashes with short seller Muddy Waters over lawsuit outcome

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Manulife clashes with short seller Muddy Waters over lawsuit outcome

RJ Dumaual, 04 October 2018

Manulife Financial Corp. rejected a short seller’s statements that the company could lose billions of dollars if it loses a lawsuit concerning a universal life policy issued in the 1990s. Hedge fund Mosten Investment LP sued Manulife, claiming that it should be able to deposit as much capital as it can with the Canadian insurer and reap at least 4% in annual interest due to an insurance contract signed in 1997, Bloomberg News reported.

Muddy Waters Capital LLC disclosed a short position in Manulife and said in a report that the insurer is facing billions in losses, Bloomberg reported. Muddy Waters founder Carson Block expects a verdict in 2018. Holders of the policies were allowed to invest in side accounts with guaranteed rates of up to 4%, according to Canada’s Financial Post. The policies were issued at a time of high interest rates and could be profitable for firms amid a low rate environment.
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Article: DoorDash customers say their accounts have been hacked

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DoorDash customers say their accounts have been hacked

Zack Whittaker, 26 September 2018

Food delivery startup DoorDash has received dozens of complaints from customers who say their accounts have been hacked.

Dozens of people have tweeted at @DoorDash with complaints that their accounts had been improperly accessed and had fraudulent food deliveries charged to their account. In many cases, the hackers changed their email addresses so that the user could not regain access to their account until they contacted customer services. Yet, many said that they never got a response from DoorDash, or if they did, there was no resolution.

Several Reddit threads also point to similar complaints.

DoorDash is now a $4 billion company after raising $250 million last month, and serves more than 1,000 cities across the U.S. and Canada.
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Article: Why You Shouldn’t Listen to Jim Cramer

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Why You Shouldn’t Listen to Jim Cramer

Nick Kapur, 24 September 2018

Nearly 11 months ago and thanks in no small part to the statement above, I concluded that Jim Cramer was a menace to investors.

It only took a few months for the rest of the nation to catch on. John Stewart finally jumped on the bandwagon in March, exposing the man for what I think he really is: an entertaining (if not, irritating) media personality, but certainly not the champion of the individual shareholder that he often claims to be.

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Article: Interested In Crius Energy Trust (TSE:KWH.UN)’s Upcoming US$0.07 Dividend? You Have 4 Days Left

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Interested In Crius Energy Trust (TSE:KWH.UN)’s Upcoming US$0.07 Dividend? You Have 4 Days Left

Becky Mayes, 22 September 2018

In late January 2021, GameStop experienced a once-in-a-decade squeeze that has captivated the world’s attention. It was a premeditated and programmatic exercise, orchestrated by coordinated stock and option buying across the retail and professional community, resulting in large institutional entities losing billions of dollars. Investment houses with significant short positions did not expect a stock with GameStop’s fundamental profile to increase +2,500% in price over less than three weeks; therefore, they did not have the controls in place to handle the incredible levels of stock and call option purchases. The frenzy drew comments from the White House, provoked a social media crackdown, caused brokerage units to restrict trading, and has led to a Congressional hearing on GameStop on Thursday, February 18th.
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Article: Short-seller Andrew Left’s Citron Research says surge in cannabis company Tilray is ‘beyond comprehension’

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Short-seller Andrew Left’s Citron Research says surge in cannabis company Tilray is ‘beyond comprehension’

Lenore Fedow, 19 September 2018

Tilray Inc (NASDAQ:TLRY) set the cannabis space ablaze following an interview with CNBC’s Jim Cramer, sending its shares surging double digits. But short-seller Andrew Left’s Citron Research had some harsh words to share about the Canadian cannabis company.

Citron Research was previously bullish on Tilray following Constellation Brands Inc‘s (NYSE:STZ) additional US$4bn investment in its rival Canopy Growth Inc (NYSE:CGC, TSX:WEED). Left had said it could be the next marijuana company to get a “white knight at a premium to market.”

The short-seller has cast doubt on other cannabis stocks via Twitter Inc (NYSE:TWTR) as well, including Cronos Group Inc (NASDAQ:CRON, CSE:CRON) and Namaste Technologies Inc (CVE:N, OTCQB:NXTTF). Shares of Tilray soared nearly 50% to US$232 in Wednesday pre-market trading.
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Article: Viceroy alleges Pretium facing personnel ‘exodus’

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Viceroy alleges Pretium facing personnel ‘exodus’

Kip Keen, 31 October 2020

Viceroy Research alleged there was a personnel “exodus” at Pretium Resources Inc. based on a list it compiled of 38 personnel changes at the gold miner in the past year or so. “Our industry consultants have expressed serious discomfort with the extent of the level of resignations, even when considering many staff were assigned on a contract basis for development works,” Viceroy Research said in a report it published Sept. 18.

It said that turnover appears to include Brucejack’s general manager Kevin Torpy who, Viceroy noted, is said to have joined Titan Mining Corp. Titan issued a press release about Torpy’s appointment as vice president of operations on Sept. 17. Viceroy said it appears Torpy left the company “in the wake of the increased scrutiny” that has come from its reports.

The allegations are the latest in Viceroy’s shorting campaign against Pretium. It has published three reports, alleging operational irregularities at Pretium’s Brucejack gold mining operations in British Columbia.
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Article: Our Final Word on $TLRY before $50

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Our Final Word on $TLRY before $50

Citron Research, 12 September 2018

Tilray management is not stupid. Just seven weeks ago Tilray decided to go public with an offering price of $17. This was done with much deliberation between them and their many bankers. With this price Citron believes they took into consideration all future deals and partnerships that the company had been planning.

The recent cannabis stock rally is a US phenomenon fueled by retail investors. Since August 15, US marijuana stocks Tilray and Cronos have significantly outpaced the performance of their Canadian traded peers.

Due to federal regulation, US listed stocks cannot have any operations in the US without losing their listings, whereas Canadian listed stocks can have US operations. The US will be the largest cannabis market in the world. Today, the California market is over 5x larger than all of Canada. Despite obvious logic, we’ve seen US retail investors pile into the US listed marijuana stocks.
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Article: Pretium – Digging Up Dirt

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Pretium – Digging Up Dirt

Tyler Durden, 06 September 2018

Distorted grades, involvement of SEC sanctioned entities, and high turnover of mineral consultants – Pretium flies many red flags. (PVG:TSX / PVG:NYSE).

Pretium Resources owns and operates the purportedly high-grade Brucejack gold mine in Northwest British Columbia in Canada. Viceroy is short Pretium Resources, as our research suggests its mining results have been distorted and the equity likely worthless as the overindebted company bleeds cash over the next 12 months:

Strathcona Mineral Services Limited (Strathcona), the mining consultancy that famously declared Bre-X to be a fraud, resigned from Pretium’s 2013 bulk sample program later stating, “…they will not have a mine producing 425,000 oz. a year for the next 20 years, as they have been advertising so far”. The entire Pretium investment thesis rests on the validity of the 2013 bulk sample program.
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Article: Glancy Prongay & Murray LLP Files a Securities Class Action on Behalf of Cronos Group, Inc. Investors (CRON)

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Glancy Prongay & Murray LLP Files a Securities Class Action on Behalf of Cronos Group, Inc. Investors (CRON)

BUSINESS WIRE, 04 September 2018

National law firm Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of persons and/or entities that acquired Cronos Group, Inc. (“Cronos” or the “Company”) (NASDAQ: CRON) securities between August 21, 2018, and August 30, 2018, inclusive (the “Class Period”). Plaintiff pursues claims against the Defendants, under the Securities Exchange Act of 1934.

On August 30, 2018, Citron Research published an article entitled “Cronos: The Dark Side of Cannabis Space,” alleging, among other things, that the Company has been “deceiving the investing public by purposely not disclosing the size of its distribution agreements with provinces – unlike every other major cannabis player” and that this was because “the agreements are so small that they could never justify the premium investors are paying for the stock.” On this news, Cronos’ share price fell $3.62 per share, or over $28%, to close at $9.12 per share on August 30, 2018, on unusually heavy trading volume.
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Article: Cronos Stock Declines by 30% After Citron Blast

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Cronos Stock Declines by 30% After Citron Blast

NATHAN REIFF, 31 August 2018

Canadian cannabis company Cronos Group, Inc. (CRON) fell by nearly 30% on Thursday following a damning prediction by Citron Research’s famous short-seller Andrew Left. According to MarketWatch, Left published a so-called “reality check” about the company and the future of the legal cannabis industry in general. Along with other factors, most importantly growing concerns about a federal pushback against marijuana legalization, Left’s report seems to have deflated several stocks in the burgeoning space. Along with CRON’s decline, fellow Canadian rivals Canopy Growth Corp. (CGC) and Tilray Inc. (TLRY) both fell, though by much smaller margins. (See also: Marijuana ETF Attracts $22 Million in August)
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Article: Cronos Group, Analyst Respond To Citron’s Short Report

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Cronos Group, Analyst Respond To Citron’s Short Report

Wayne Duggan, 31 August 2018

Citron’s Andrew Left said Thursday morning that Cronos’ agreements are so small that they wouldn’t even come close to justifying the huge gains in the company’s market cap. Left said Cronos lags its Canadian cannabis peers in sales, trades at a steep premium to Canopy Growth Corp CGC 0.42% (which has a beverage deal in place), has a history of product recalls, has no U.S. business and is spending practically nothing on research and development.

“When looking at Cronos relative to other cannabis stocks that have yet to receive a ‘beverage deal,’ Cronos’ sky high valuation looks completely out of whack with fundamentals,” Left said.
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THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?