The pitch is simple.
Give us $100 million to sell short a stock that we will first publish on our blog, effectively guaranteeing any early investors an instant profit.
“We raised a meaningful amount of capital (in) a very short timeframe, so clearly we struck a chord within the alternatives community,” Adrangi wrote in an email to investors Wednesday reviewed by Reuters.
“We’ve taken a company that’s worth north of $10 (billion), and we’ve endeavored to get everyone to understand the insights we have about it,” Adrangi added in the note.
Kerrisdale is one of the many bearshitter websites that go spastic frenzied against a singular stock, issuing scathing reports that scare the shit out of longs and draw in a cadre of blood sucking vampires to pile in short upon seeing their reports. The result is usually a sharply lower share price on the day the report is published, which, by extension, is a round about way to front run.
This special short idea will be unveiled in May, at which time all of the capital would’ve been allocated towards seeing its decline, naturally.
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What could go wrong?
All good fun until somebody loses an eye.
Pirates who plunder the markets.
Basically there are two scenarios:
1) Their analysis is correct. In this case, the longs may as well find out in May rather than months down the road.
2) Their analysis is wrong. Hold through the drop or buy more at a discount.
$100M is significant, but still <1% of the float
I like the variety of posts – there's always soemthing to think about