Tag: short seller

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Lawyer: Anthony Elgindy

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Anthony Elgindy (November 28, 1967 – July 23, 2015),[1] was an American stock broker, and financial commentator who founded Pacific Equity Investigations. Elgindy gained a reputation for his “investigations” of companies. Towards the end of his life, Elgindy was convicted of insider trading and served seven years in federal prison..

Born in Egypt as Amr Ibrahim Elgindy, Elgindy was known professionally as “Anthony@Pacific”, the “Internet’s most theatrical short-seller”. Continue reading “Lawyer: Anthony Elgindy”

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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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Article: Why Wendy’s Stock Crashed Today

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Why Wendy’s Stock Crashed Today

Anders Bylund, 02 April 2020

Shares of fast-food chain Wendy’s (NASDAQ:WEN) fell as much as 8.6% on Thursday even though the market trended upward in general. Noted short-seller Jim Chanos appeared on CNBC in the morning and said that he still expects several food-service stocks (including Wendy’s) to continue falling. After mounting a partial recovery, the stock closed Thursday’s trading 4.4% lower.

The founder of short-selling investment firm Kynikos Associates appeared on CNBC’s Halftime Report, where he said that the firm still is short-selling restaurant stocks such as Wendy’s, Burger King parent Restaurant Brands (NYSE:QSR), and Dunkin’ Brands (NASDAQ:DNKN). Restaurant Brands shares fell as much as 5.4% today, and Dunkin bottomed out at a drop of 8.2%.
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Article: Shopify’s (SHOP) Stock Price Soars As Short Seller Throws in the Towel

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Shopify’s (SHOP) Stock Price Soars As Short Seller Throws in the Towel

Mat Litalien, 11 January 2020

Since going public, Shopify (TSX:SHOP)(NYSE:SHOP) has been one of Canada’s most prolific stocks. Shareholders who were lucky enough to get in on the company at its IPO price would be sitting on gains in excess of 1,450%! One of the downsides of being an industry disruptor and one of the top performers as that there will always be skeptics.

In the markets, these skeptics take many forms, but one of the most polarizing is the short seller, which is a bearish investors who makes significant bets against the company. In extreme cases, a short seller will spend considerable time and effort trying to market their bearish outlook to the masses. In Shopify’s case, it was attacked repeatedly by notable short seller Andrew Left, Managing Partner at Citron Research. Citron is known for making big marketing splashes.
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Article: Short on Dunkin’ Brands and Burger King’s Parent: Jim Chanos

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Short on Dunkin’ Brands and Burger King’s Parent: Jim Chanos

SHOBHIT SETH, 25 June 2019

Founder and president of Kynikos Associates, Jim Chanos, is betting against two popular fast food stocks. Talking about his short positions in Dunkin’ Brands Group Inc. (DNKN) and Burger King’s parent company, Restaurant Brands International Inc. (QSR), the closely followed short seller told CNBC in an interview on Thursday morning, “We’ve been short these things for about a year.” (See also: The World’s Top 10 Restaurant Companies.)

Providing the justification for his short calls on the stocks, Chanos expressed concerns about the increasing price-to-earnings ratios of the restaurant stocks as the business continues to struggle. An increasing trend in price-to-earnings ratios indicates a higher price of the stock compared to its earnings potential and is considered to be detrimental to sustained positive returns from the stock investments.

Questioning the viability of the “franchisers versus the franchisees” operating model of such businesses, Chanos added that he doesn’t like what he calls “this asset-light idea” of these companies not owning their restaurants while “basically clipping the coupons, collecting royalties” from the franchises.
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Article: Citron Says the “Bidding Is On” for This Cannabis Company

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Citron Says the “Bidding Is On” for This Cannabis Company

DANIEL LIBERTO, 19 December 2018

Famous short seller Andrew Left has high hopes for Aphria Inc. (APHA). In a research note, Left’s firm Citron Research claimed that the heavily shorted marijuana stock could hit $8 within the next two weeks because it has emerged as a prime acquisition target for either a major consumer packaged goods company or another marijuana producer.

“Expect an $APHA major partnership or total buyout SOON,” Citron tweeted on Tuesday after publishing its report. Citron’s bullish note, on top of news that Aphria expanded on an existing licensing agreement with Rapid Dose Therapeutics to offer its QuickStrip oral drug delivery system to customers in fast-growing marijuana market Germany, lifted the Canadian company’s shares 7.79% during Tuesday’s trading session.
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Article: More smoking guns will be revealed about Aphria, says short-seller

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More smoking guns will be revealed about Aphria, says short-seller

Jayson MacLean, 06 December 2018

Recently emerged fraud allegations concerning marijuana company Aphria Inc (Aphria Stock Quote, Chart TSX, NYSE: APHA) may have already trashed the stock, but the worst could still be forthcoming, says short-seller Gabriel Grego, who claims there’s likely a lot more damning evidence to be revealed in the company’s documents.

A report released on Monday and co-authored by Hindenburg Research and Grego’s Quintessential Capital Management alleges that Aphria paid “vastly inflated” prices for essentially worthless assets in Latin America, in particular the $193-million purchase of LATAM Holdings, a subsidiary of Scythian Biosciences which has assets in Jamaica, Colombia and Argentina.
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Article: HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages ACM Research (ACMR) Investors with Losses to Contact Its Attorneys, Securities Fraud Case Filed

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The marijuana producer Aphria is crashing after short seller alleges it’s a ‘shell game with a cannabis business on the side’ (APHA)

Ethel Jiang, 03 December 2018

The marijuana producer Aphria slumped as much as 30% — to a low of $5.60 a share — after a firm alleged the company’s business was full of overvalued buyouts and fraudulent financial reporting. “Aphria is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets,” short seller Quintessential Capital Management’s Hindenburg Research said Monday morning in a report titled “Aphria: a shell game with a cannabis business on the side.” Aphria responded Monday afternoon in a press release, referring Hindenburg Research’s report as “a malicious and self-serving attempt to profit by manipulating Aphria’s stock price at the expense of Aphria’s shareholders.”
Continue reading “Article: HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages ACM Research (ACMR) Investors with Losses to Contact Its Attorneys, Securities Fraud Case Filed”

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Article: Short seller Andrew Left has his doubts about Canadian pot stocks, says he’s betting against Canopy

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Short seller Andrew Left has his doubts about Canadian pot stocks, says he’s betting against Canopy

Thomas Franck, 14 November 2018

Citron Research’s Andrew left reiterated his bet against the Canadian cannabis industry Wendesday, telling CNBC that he’s short Canopy Growth and Cronos Group in addition to his already disclosed wager against Tilray.

Fielding a question from “Halftime Report” host Scott Wapner, Left said his doubts on the space aren’t confined to just one company. “I’m also short Cronos, I’m short Canopy, I’m short Tilray. So I’m short a basket of the names,” he said. “Once the U.S. licensed producers come on — the faster it becomes legal in the U.S., the quicker the Canada names go lower.”

“They won’t get the exposure in the U.S., they’re not players internationally,” Left added. “I don’t care how many press releases they put out, they’re not going to be shipping cannabis from Canada to Australia. Not happening.”
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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: Cronos CEO ‘confident’ about company’s disclosures amid Citron report

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Cronos CEO ‘confident’ about company’s disclosures amid Citron report

David George-Cosh, 30 August 2018

Cronos Group Inc. (CRON.TO) chief executive Mike Gorenstein said he is “very confident” in the Toronto-based cannabis producer’s disclosures after a short seller released a report alleging that it was “deceiving” investors.

U.S.-based Citron Research published a report Thursday that advised investors to exercise caution in the growing Canadian cannabis space, highlighting Cronos with a price target of just $3.50 a share. The report sent Cronos shares down nearly 27 per cent on the Toronto Stock Exchange, triggering a stock circuit breaker and briefly halted trading in the company’s shares. When shares resumed trading, Cronos fell as much as 29 per cent before paring earlier losses. Despite the dramatic drop, the shares are still higher than they were just a week earlier.
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Article: Marijuana Stocks Fall As Short Seller Says Pot Play Is ‘All Talk’

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Marijuana Stocks Fall As Short Seller Says Pot Play Is ‘All Talk’

BILL PETERS, 30 August 2018

Marijuana stocks retreated Thursday after short seller Citron Research alleged that Canadian cannabis producer Cronos Group (CRON) was “all talk” and was omitting key details about the size of its distribution agreements. The company, Citron Research alleged in a report Thursday, “appears to have been deceiving the investing public by purposely not disclosing the size of its distribution agreements with provinces — unlike every other major cannabis player.”

“Our sources have informed us that it’s because the agreements are so small they could never justify the premium investors are paying for the stock,” Citron Research said. Cronos said it could not comment on the report. The company said its advisers had done “all the necessary due diligence under both US and Canadian securities law.” In arguing its case, Citron cited an Aug. 21 news release from Cronos that announced provincial supply agreements across Canada, without any details about how big those deals were.
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Article: Why Famed Short-Seller Jim Chanos Is Betting Against Burger King And Dunkin’ But Praising Chipotle

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Why Famed Short-Seller Jim Chanos Is Betting Against Burger King And Dunkin’ But Praising Chipotle

Maggie McGrath, 26 April 2018

The tale of two restaurant ownership models — wholly-owned and franchised — is translating into similarly divergent market performances for certain restaurant stocks Thursday. And much of the movement has to do with the comments of one short-seller.

Shares of Dunkin’ Brands and Restaurant Brands International (QSR), which is Burger King’s parent company, are in negative territory after Jim Chanos, the investor who famously shorted Enron, told CNBC Thursday morning that he’s taken short positions in both names. His reason: he is not optimistic about the future of asset-light, franchise-focused businesses. “[E]verybody wants to sell the restaurants and not own them but basically clip the coupon of collecting royalties,” he said. “And we’ve had this dichotomy now of restaurant stock multiples going higher and higher and higher as restaurants themselves have struggled. I think at some point that has to come to an end.”
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Article: Crius Energy Trust Provides Further Response to False and Misleading Statements by Anonymous Short Seller

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Crius Energy Trust Provides Further Response to False and Misleading Statements by Anonymous Short Seller

GLOBE NEWSWIRE, 02 March 2018

On February 28, the market price of Crius Energy Trust (“Crius Energy” the “Company” or the “Trust”) (TSX:KWH.UN) units declined significantly in response to false and misleading statements made in a blog posting by an anonymous, self-described short seller of our Trust units (the “Short Seller”). While it is not the Company’s practice to respond to bloggers or commenters in investor forums, we believe that given the magnitude of the impact on the price of our units as well as the malicious nature of the statements made by the Short Seller, it is in the best interests of our unitholders for us to respond. Furthermore, Crius Energy believes that it has identified the persons and entities responsible for the blog post. The Trust intends to take appropriate measures, both in the courts and with appropriate securities regulatory authorities, to address the harm done to our unitholders.
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Article: Statements by Anonymous Short Seller

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Statements by Anonymous Short Seller

GLOBE NEWSWIRE, 02 March 2018

On February 28, the market price of Crius Energy Trust (“Crius Energy” the “Company” or the “Trust”) (TSX:KWH.UN) units declined significantly in response to false and misleading statements made in a blog posting by an anonymous, self-described short seller of our Trust units (the “Short Seller”). While it is not the Company’s practice to respond to bloggers or commenters in investor forums, we believe that given the magnitude of the impact on the price of our units as well as the malicious nature of the statements made by the Short Seller, it is in the best interests of our unitholders for us to respond. Furthermore, Crius Energy believes that it has identified the persons and entities responsible for the blog post. The Trust intends to take appropriate measures, both in the courts and with appropriate securities regulatory authorities, to address the harm done to our unitholders.
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