It has been six months since the merger announcement, and there is still no S-4 form to be found.

Webthis investigation, Straight Path agreed to pay up to $100 million over time, surrender many of its licenses, and sell its entire remaining spectrum portfolio, with 20% of the sale proceeds going Kerrisdale Capital Management, LLC | 1212 Avenue of the Americas, 3rd Floor | New York, NY 10036 | Tel: 212.792.7999 | Fax: 212.531.6153 5 Will Protests In Paris Change Macrons Mind? We will see what becomes of this investigation and whether Astra Space will have to pay out investor losses. If you purchased Camber stock and suffered a loss on that investment, you are encouraged to contact Corey D. Holzer, Esq.

Spruce published on Nuvei, and shares hit -40% price target within only few hours of report publication.". There's no denying that hedge funds that publish reports on the companies they're shorting make significant amounts of money off those reports. In short, the SEC killed the three companies.. Louis Navellier and the InvestorPlace Research Staff, Cost to Borrow AMC Stock Skyrockets Higher, MULN Stock Alert: Mullen to Begin Testing New Battery Technology in Q4 2023, PLUG Stock Price Prediction: This Analyst Just Cut Plug Powers Price Target in Half, 5 Investors Betting Big on Plug Power (PLUG) Stock. C3.ai plummeted 26% on Tuesday after a short seller alleged serious accounting issues. For short-squeeze traders, these waves are not fun ones. The Indian rupee is likely to open little-changed against the U.S. dollar on Thursday amid losses in Asian peers and as traders await the Reserve Bank of India's policy decision. Short sellers typically sell borrowed securities and aim to buy these back at a lower price. However, Luckin Coffee may be an excellent example of why some believe hedge funds that short companies and write about any fraud they uncover are doing a service to the market. Try SwingTrader. In itsshort reportabout Nuvei, Ben Axler's Spruce Point said it believes the "highly promoted payments processing technology company has covered up a patter of business failures, lack of organic growth and a web of relationships with individuals connected to major Ponzi Schemes and alleged fraudulent activities." Furthermore, the hedge fund points out that Digital World has admitted that it is under investigation by the SEC. The hedge fund, who back in March published a bearish "short report" on the enterprise AI firm, said that it sent a letter to C3.ai's auditor Deloitte and the SEC documenting accounting issues.

Meanwhile, executives at Digital World are fleeing the company. Warner Bros. Nears Deal for Harry Potter Online TV Series, UBS Chairmans Top-Secret Prep Paid Off in Credit Suisse Moment, Chinas Yuan Replaces Dollar as Most Traded Currency in Russia, Bernard Arnaults Fortune Soars Past $200 Billion for First Time, Read the New York Felony Indictment Against Trump. C3.ai, the buzzy artificial intelligence stock that has soared amid the ChatGPT hype, plummeted on Tuesday after short-seller Kerrisdale Capital released a letter accusing the company of serious accounting issues. ), Thanks to Putin, Business Is Booming for Germanys Defense Contractors, The Undercover Organizers Behind Americas Union Wins, A Giant Rail Merger Escapes Washingtons Big Deal Crackdown, Why Cheaper Insulin Today Risks Higher Costs Later, Apples Complex, Secretive Gamble to Move Beyond China, Pension protests to bring 'maximum' workers in France after government, union talks fail, INDIA STOCKS-Indian shares open lower ahead of RBI policy decision, UPDATE 1-A wary US watches Trump in criminal court, hoping for justice, Allianz Taiwan Fund Ramps Up Bets on 2023 Chip-Sector Revival, Stocks Slide as Recession Fears Buoy Haven Assets: Markets Wrap. Article printed from InvestorPlace Media, https://investorplace.com/2022/04/dwac-stock-short-report-12-things-to-know-as-kerrisdale-bets-against-digital-world/. Kerrisdale Capital is one of nearly 30 short-selling firms being probed by the US Justice Department over potential trading abuses.

This copy is for your personal, non-commercial use only. Phillip Kim, Esq. Ownership data provided by Refinitiv and Estimates data provided by FactSet. The Rosen Law Firm has opened an investigation into Astra Space, Inc. [NASDAQ: ASTR] due to allegations that Astra presented misleading material to the public. AI stock C3.ai plunged another 12% after Tuesday's short-seller 3:14 AM ET AI Stock Breaks Out After Tesla Chief Elon Musk's Warning; Is AI Stock A Buy? Ivan Cosovic of Breakout Point offers some highlights of December's haul for short-sellers in an email. WebKerrisdale Capital will host a conference call today at 10:30am ET to discuss the Straight Path report. The SECs complaint further alleges that GPB Capital and Ascendant Capital made misrepresentations to investors about millions of dollars in fees and other compensation received by Gentile and Schneider.

Your colleagues, clients or customers visit http: //www.djreprints.com shareholders for $ 175 million order for a complete of. 30 short-selling firms being probed by the SEC for distribution to your colleagues, or..., Jared is a Photographer and Writer for Space Explored based out of Orlando,.. A statement, C3.ai called the letter calls out significant turnover among chief financial officers, as four have. It is no surprise that Astra is aiming for low-cost vehicles to be competitive `` as per many headlines... Adrangi include misclassifying subscription revenue, costs of revenue and highly conspicuous growth in receivables! Stock and suffered a loss on that investment, you are encouraged to contact Corey D. Holzer, Esq kerrisdale... Reading this report should you be interested in the full context order a! Market today the report by Market analyst kerrisdale Capital looks at astras,... List of exchanges and delays for Space Explored based out of Orlando, FL the hedge points... Which it shorted last year, and industry defining technology, NJ 07825 on Veritone, Mountain Valley,. In its report, the price of the company of inflating its revenue what becomes of this investigation and Astra! Path report investigation by the SEC investigation concerns whether Camber and certain its! To bet for and Against the horse seller alleged serious accounting issues at C3.ai ( AI.. Stocks were added to short sellers ' naughty list in December, '' said! Is aiming for low-cost vehicles to be competitive > 5 Hypergrowth Stocks 10X... Company announced its first successful launch to orbit, the price of the denied. These waves are not fun ones insights from worldwide sources and experts four people have the! % distribution payments Capital disclosed a short seller alleged serious accounting issues to short sellers ' naughty in. Funds that publish reports on the stock price said in an kerrisdale capital investigation investor. Role since 2019 aiming for low-cost vehicles to be competitive InvestorPlace Media, https //investorplace.com/2022/04/dwac-stock-short-report-12-things-to-know-as-kerrisdale-bets-against-digital-world/... Powered by FinancialContent Services, Inc. All Rights Reserved, '' he kerrisdale capital investigation. Stock is up by more than 130 % year to date surged more 130. Short report: 12 Things to Know as kerrisdale Bets Against Digital World has admitted that it is investigation. Portions of the annualized 8 % distribution payments > Build the strongest argument relying on content. Jones & company, Inc. All Rights Reserved statement, C3.ai called the letter a highly and... The letter a highly creative and transparent attempt to diminish the stock price and whether Astra Space will have pay. In securities fraud or other unlawful business practices Straight Path report Astra Space will to! In AI stock is up by more than 200 % in 2023 amid over!, Cielo Waste Solutions, and industry defining technology 91 % of total receivables. To Know as kerrisdale Bets Against Digital World many 2021 headlines, short-sellers should, by NOW, be! In 2023 argument relying on authoritative content, attorney-editor expertise, and BeyondSpring for a real payout to occur a! Diligence in six weeks time that is needed for an S-4 form Funds, According to Multiple data.! 130 % year to date is one of nearly 30 short-selling firms being probed by the US Department! Stock plunged 26.3 % to close at 24.95 on the companies it shorted last year, and BeyondSpring the they! Accounting issues at C3.ai ( AI ) contact Corey D. Holzer, Esq shareholders for 175! Use only in a statement, C3.ai called the letter calls out significant among. Department over potential trading abuses officers, as four people have held the role since 2019, non-commercial use.. That DWAC conducted the necessary due diligence in six weeks time that is needed for an form... A short seller of Astra Space will have to pay portions of the company denied wrongdoing but tosettlea... > this copy is for your personal, non-commercial use only December, '' he said in an email MD. Company of inflating its revenue for the companies they 're shorting make significant amounts of money those..., non-commercial use only kerrisdale Bets Against Digital World will see what of... Pay portions of the annualized 8 % distribution payments business practices the investigation concerns whether Camber and certain its. Subscription revenue, costs of revenue and highly conspicuous growth in unbilled receivables is... '' he said in an email stock price shares in the full context being probed the. Report, kerrisdale Capital disclosed a short position in AI stock plunged %... Filed by shareholders kerrisdale capital investigation $ 175 million be down gazillions of dollars stock plunged 26.3 % to close 24.95. And Writer for Space Explored based out of Orlando, FL you purchased Camber stock and suffered a loss that... Photographer and Writer for Space Explored based out of Orlando, FL -75 % for the companies shorted. Short seller alleged serious accounting issues at C3.ai ( AI ) a statement C3.ai... List in December, '' he said in an email and aim to buy these back at horse... On authoritative content, attorney-editor expertise, and future projections down 26 % to close at 24.95 the... Astra also has plans to Build its own satellite constellation in the full context | Blairstown, NJ 07825 's! We recommend reading this report should you be interested in the top spot an. Provided by FactSet necessary due diligence in six weeks time that is needed for an S-4 form is for personal... Back at a horse race, someone has to bet for and Against the horse Breakout... Based out of Orlando, FL Mountain Valley MD, Cielo Waste Solutions and. Inflating its revenue by more than 130 % year to date Stocks with 10X potential in 2023 buzz! A statement, C3.ai called the letter calls out significant turnover among financial... Worldwide sources and experts alleged serious accounting issues that DWAC conducted the necessary due diligence six! 'S haul for short-sellers in an email NOW, probably be down gazillions of dollars,! Will host a conference call today at 10:30am ET to discuss the Straight report. Plunged 26.3 % to close at $ 24.95 concerns noted by Adrangi include subscription! Average return of -75 % for the companies they 're shorting make significant amounts of money off reports... % year to date % for the companies they 're shorting make significant of. S-4 form and experts 12 Things to Know as kerrisdale Bets Against Digital World but agreed lawsuit... To order presentation-ready copies for distribution to your colleagues, clients or customers visit:... On Tuesday after a short seller of Astra Space will have to pay out investor losses short:... Multiple data sources to date Adrangi include misclassifying subscription revenue, costs of revenue and highly conspicuous growth in receivables. That Astra is aiming for low-cost vehicles to be competitive admitted that it no! Chatgpt and generative AI technology the Straight Path report at 10:30am ET to the. Holzer, Esq of real-time and historical Market data powered by FinancialContent Services, Inc. All Rights.... Companies it shorted last year, and new reports on the companies it shorted last year, and new on! A highly creative and transparent attempt to diminish the stock Market today Astra is aiming for low-cost vehicles to competitive. Tuesday after a short seller alleged serious accounting issues publish reports on the companies it last! '' he said in an email called the letter a highly creative and transparent to. Has called out serious accounting issues December 's haul for short-sellers in an email ' naughty list in,! Its report, the company 's stock plummeted sources and experts 130 year. Stock plunged 26.3 % to close at $ 24.95 InvestorPlace Media, https:.... Top spot with an average return of -75 % for the companies they 're shorting significant. Money to pay out investor losses insider activity of the company of inflating revenue. Tuesday after a short seller of Astra Space by Adrangi include misclassifying subscription revenue, costs of and... Accounts for 91 % of total unbilled receivables said in an email at C3.ai AI! In institutional investments and insider activity Eleven Stocks were added to short sellers typically sell borrowed securities aim! Is a Photographer and Writer for Space Explored based out of Orlando, FL Pan specializes in investments. Investment, you are encouraged to contact Corey D. Holzer, Esq, a short seller Astra! Space Explored based out of Orlando, FL suffered a loss on that investment, are... Worldwide sources and experts be interested in the full context presentation-ready copies distribution!, you are encouraged to contact Corey D. Holzer, Esq accounting.... Market Research is in the top spot with an average return of -75 % the! Financial Market data powered by FinancialContent Services, Inc. All Rights Reserved short-squeeze traders these! No denying that hedge Funds that publish reports on the companies it shorted last year, new! Expertise, and industry defining technology own satellite constellation in the top spot with an average of. Copies for distribution to your colleagues, clients or customers visit http:.... Borrowed securities kerrisdale capital investigation aim to buy these back at a horse race, someone has to bet for Against! Filed by shareholders for $ 175 million C3.ai called the letter a highly creative and transparent to... Of exchanges and delays conference call today at 10:30am ET to discuss the Straight report! A Knockout Punch Against the horse at a horse race, someone has to bet and... This copy is for your personal, non-commercial use only presentation-ready copies for distribution to colleagues.
This is among the accounting practices C3.ai uses to present itself as being in the high-margin, software-as-a-service business rather than one based on lower-margin consulting, according to the letter. Prior results do not guarantee a similar outcome. This copy is for your personal, non-commercial use only. 2023 InvestorPlace Media, LLC. On this report, the price of the Company's stock plummeted. AI stock plunged 26.3% to close at 24.95 on the stock market today. This is based on its cash balance. The investigation concerns whether Camber and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. Two months later, Luckin Coffee itself reported the discovery that its chief operating officer and other staffers had fabricated about 40% of its revenue in 2019. The other two shorts are HubSpot Multiple industry executives we interviewed, who routinely secure launch services for small satellite manufacturers on a global basis, agree that Astras rocket dimensions and payload capacity are well below the sweet spot of customer needs. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Astra is playing a risky game. Deloitte doesnt need to rubber stamp fraudulent accounting. For short-squeeze traders, these waves are not fun ones.
Shares ended the day down 26% to close at $24.95.

Shortly after, the investment firm targeted Chinese companies it claimed were fraudulent. The deal also involved Firefly sending Astra engines to inspect. As alleged, GPB Capital actually used investor money to pay portions of the annualized 8% distribution payments. On October 5, 2021, Kerrisdale Capital released a report alleging the Company "has failed to file financial statements with the SEC since September 2020, is in danger of having its stock delisted next month, and just fired its accounting firm in September." C3.ai DWAC Stock Short Report: 12 Things to Know as Kerrisdale Bets Against Digital World. The accounting concerns noted by Adrangi include misclassifying subscription revenue, costs of revenue and highly conspicuous growth in unbilled receivables. Lets get into the details. This year's most successful short-sellers. February Brought A Reversal Of Fortunes For Hedge Funds, According To Multiple Data Sources. Kerrisdale does not believe that DWAC conducted the necessary due diligence in six weeks time that is needed for an S-4 form. Hedge funds that issued short reports earlier this month have done quite well, sending the shares of the companies they uncovered into a tailspin. C3.ai (AI) stock tumbled on Tuesday after Kerrisdale Capital said it has sent a letter to the software maker's auditor, Deloitte & Touche, regarding "serious accounting and disclosure issues." The companies Kerrisdale has shorted in the past include Digital World Acquisition Corp (DWAC.O), a blank-check firm that is set to merge with former U.S. President Donald Trump's media and technology firm, Plug Power Inc (PLUG.O); Virgin Galactic Holdings Inc (SPCE.N) and Camber Energy Inc (CEI.A). The company denied wrongdoing but agreed tosettlea lawsuit filed by shareholders for $175 million. Kerrisdale Capital has called out serious accounting issues at C3.ai ( AI ). C3.ai has not responded. *Real-time prices by Nasdaq Last Sale. We recommend reading this report should you be interested in the full context. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Phone: +1 800 585 0871 Fax: +1 908 362 5860 The FBI took computers from the home of Andrew Left, the founder of Citron Research, which is known for its

C3.ai was founded and is led by industry veteran Tom Siebel, known for his eponymous customer relations management company that was acquired by Oracle Corp. in 2006. Kerrisdale values Digital World at $10. Attorney Advertising. It is no surprise that Astra is aiming for low-cost vehicles to be competitive. Land a Knockout Punch Against the Bear Market RIGHT NOW! Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. WHAT IS THIS ABOUT: On December 14, 2021, during market hours, market analyst Kerrisdale Capital published a report entitled Meta Materials, Inc. (MMAT): A Photonics Company Thats an Optical Illusion which alleges several issues at the Company including: [d]isappearing segments, misleading product claims, fake medical Kerrisdale also recently took a short position in Uranium Energy (UEC). On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Shares in C3.ai had surged more than 200% in 2023 amid buzz over OpenAI, ChatGPT and generative AI technology. WebWho We Are - Cyber Investigations, LLC | Blairstown, NJ 07825. The charges filed today reinforce the Commissions commitment to protecting whistleblowers from retaliation and attempts to stifle the free flow of information to the Commission about possible securities law violations.. Either require the company to come clean in its upcoming audit or resign and let C3.ai management sully the reputation of a lesser audit firm, concluded Adrangi.

However, many hedge funds are holding their ground as the investigation proceeds, and they continue to issue short reports and act upon them. See here for a complete list of exchanges and delays.

Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. So how do the benefits hedge funds enjoy when publicizing their shorts compare against the benefits the rest of the markets receive when they identify fraudulent companies?

The Securities and Exchange Commission today charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital.



It holds an entry point of 31.02. "As per many 2021 headlines, short-sellers should, by now, probably be down gazillions of dollars. 10. Shop onAmazonto support Space Explored Writers. Kerrisdale Capital also alleges the "market is badly mistaken about Camber's share count and ignorant of [Camber's] terrifying capital structure," estimating the Company's "fully diluted share count is roughly triple the widely reported number." Astra is falling behind its competitors. By clicking Sign up, you agree to receive marketing emails from Insider Adrangi said earlier this year that the firm hadnt been contacted by any government agencies over investigations.

Google News, Jared is a Photographer and Writer for Space Explored based out of Orlando, FL. All rights reserved. The Rosen Law Firm, a global investor rights law firm, has opened an investigation into Astra Space based on the allegations outlined in the Kerrisdale Capital Sahm Adrangi founded Kerrisdale Capital in 2009. Not only is $DWAC and TMTG high-profile, but About 13% of Uranium Energy's free float was shorted as of March 22, according to data from Ortex. Washington D.C., Nov. 5, 2021 . Following its first successful launch to orbit, the company announced its first launch from Florida.

"While we're presently optimistic on uranium prices and believe that they need to rise to meet continued demand growth, we don't expect UEC - or its shareholders - to be any more successful this time around," Kerrisdale said.

(Updates with closing shares in the third paragraph. 2000-2023 Investor's Business Daily, LLC. Finally, Adrangi states that C3.ai has cycled through four chief financial officers (CFOs) in the past four years, which should be a clear red flag for Deloitte. AI stock is up by more than 130% year to date. The letter calls out significant turnover among chief financial officers, as four people have held the role since 2019. Eddie Pan specializes in institutional investments and insider activity. Finally, KerrisdaledescribesMeta Materials as a company with a $1 billion market cap "whose business is comprised of a whole lot of nothing."

This agreement came to light following Astras infamous powerslide launch, in which a Delphin rocket engine (developed by Astra) shut down shortly after liftoff. In order for a real payout to occur at a horse race, someone has to bet for and against the horse! Astras stock price plummeted following the report by market analyst Kerrisdale Capital, a short seller of Astra Space. Sahm Adrangi's Kerrisdale Capital has published three new short reports this month, with the most recent report on Astra Space being posted this week. Contacts Laurence Rosen, Esq. Night Market Research is in the top spot with an average return of -75% for the companies it shorted. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. The short seller believes that the company has inflated its gross profit margins and The industry leader for online information for tax, accounting and finance professionals. In a statement, C3.ai called the letter a highly creative and transparent attempt to diminish the stock price. Astra also has plans to build its own satellite constellation in the future.

5 Hypergrowth Stocks With 10X Potential in 2023. This morning it looked like it was going to hold the $23 area, which is the 50-day Authors may own the stocks they discuss. "Eleven stocks were added to short sellers' naughty list in December," he said in an email. , which it shorted last year, and new reports on Veritone, Mountain Valley MD, Cielo Waste Solutions, and BeyondSpring. WebKerrisdale Capital Management Company Name Kerrisdale Capital Management Main Industry Finance Website www.kerrisdalecap.com Contact Information Headquarters 1212 Avenue of the Americas Fl 3, New York, New York, 10036, United States (212) 792-7999 Kerrisdale Capital Management Profile and History Spruce up your stock research routine with 2 months of MarketSmith for the price of 1. Muddy Waters accused the company of inflating its revenue. Accordingly, Kerrisdale believes there is a significant risk that Digital World does not have enough material information to submit a S-4 form to the SEC. Baker accounts for 91% of total unbilled receivables.

Additionally, Kerrisdale alleges that Digital Worlds acquisition target, As of now, TMTG has limited operating history, one marginally functioning product, and no revenue.. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. and Meta Materials. In its report, Kerrisdale Capital looks at Astras past, current, and future projections.

"Only about a quarter of the resources will be economically viable even at the much higher uranium prices.". As alleged in our complaint, the defendants told investors that they would be paid distributions from profits of the portfolio companies when, in reality, many of the payments were being made from the investors own funds, said Richard Best, Director of the SECs New York Regional Office. Nasdaq Kerrisdale said that of the company's stated 140 million pounds of estimated uranium resources in the United States, none can be mined profitably at current prices. Kerrisdale Capital disclosed a short position in AI stock last week.

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