We are short GSX because we conclude that it is a near-total fraud. Cutting through the new bullshit, we adjust Burford’s cash receipts to show a YoY decline of -11.8%. Copyright © 2020 Muddy Waters Research, All Rights Reserved. GSX’s responses since consist largely of drivel, designed to obfuscate and lie. If you are in the United Kingdom, you confirm that you are accessing research and materials as or on behalf of: (a) an investment professional falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”); or (b) high net worth entity falling within Article 49 of the FPO (each a “Permitted Recipient”). While trawling the sewers of the world’s capital markets over the past 10 years, irony has never been in short supply. Copyright © 2020 Muddy Waters Research, All Rights Reserved. 6) My friend Carson Block of Muddy Waters Research was spot on in his warnings about Luckin Coffee, so investors would be wise to carefully consider his latest report about another Chinese company he believes is a fraud, online education provider GSX Techedu (GSX). There are important similarities, though. If also including fixed costs, our per MA member loss estimate becomes -$4… more, Block on Bloomberg discussing MW's latest short, Burford Capital. Nikola rolled a truck down the hill to try to prove it’s real. We maintain our view that GSX is a massive fraud – i.e., it is a nearly empty box. Muddy Waters’ report came weeks after Citron Research called GSX “the most blatant Chinese stock fraud since 2011.” Citron accused GSX of overstating revenue by … Watch the full interview here… more, Block on CNBC Squawk Box discussing a new kind of activism - morality shorts. If any provision of these Terms of Use is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties’ intentions as reflected in the provision and rule that the other provisions of these Terms of Use remain in full force and effect, in particular as to this governing law and jurisdiction provision. A former GSX manager corroborated our conclusions, and even detailed how GSX’s bot operations work. GSX: Small Classes, Big Lies (GSX US) GSX Techedu Inc. 2020-05-28: MW is Short GSX Techedu Inc. (GSX US) GSX Techedu Inc. 2020-05-18: Burford: Husbanding Liquidity, Wife-ing Financials (BUR LN) Burford Capital Ltd. 2020-05-11: MW is Short eHealth Inc. (EHTH US) eHealth Inc. 2020-04-08 So what. This is not an offer to sell or a solicitation of an offer to buy any security. Each report specifies the publisher and owner of that report. In no event shall Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons be liable for any claims, losses, costs or damages of any kind, including direct, indirect, punitive, exemplary, incidental, special or, consequential damages, arising out of or in any way connected with any information on this website. You understand and agree that Muddy Waters Capital does not have any investment advisory relationship with you or does not owe fiduciary duties to you. All expressions of opinion are subject to change without notice, and neither Muddy Waters Research nor Muddy Waters Capital undertakes to update or supplement any reports or any of the information, analysis and opinion contained in them. This limitation of liability applies regardless of any negligence or gross negligence of Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons. Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. These Terms of Use govern current reports published by Muddy Waters Research and supersede any prior Terms of Use for older reports of Muddy Waters Research, which you may download from the Muddy Waters Research’s website. A fourth pattern “Early Joiners” is highly likely indicative of bots. Watch the full interview here… more. Use of Muddy Waters Research reports is limited by the Terms of Use on its website, which are as follows. Further, any report on this site contains a very large measure of analysis and opinion. The Company respects Muddy Waters' efforts. Watch the full interview here.… more. EHTH’s future cash flows are therefore highly speculative.… more, On May 18th, we published our research on GSX in which we concluded that at least 70% of GSX’s purported users are fraudulent, and quite likely the real percentage of fake users is over 80%. Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. GSX’s response: “Muddy Waters is bluffing.” Teen Teacher Born in a poor village in northern China, Chen’s father helped him enroll in a tuition-free vocational training school for teachers. BEIJING, May 19, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research's latest report, dated May 18, 2020. Muddy Waters peels back the layers, often built up by seemingly respected but sycophantic law firms, auditors, and venal managements. Based on variable costs alone, we estimate that EHTH will lose approximately -$135 from each MA member it enrolled in 2019. Read More . Reports are based on generally available information, field research, inferences and deductions through the applicable Muddy Waters Entity’s due diligence and analytical process. “GSX, after we reported it, tripled,” Block said in an interview with Bloomberg Television. GSX Techedu Inc. May 29, 2020, 06:49 ET . Block on CNBC’s Squawk Box discussing MW's latest short, eHealth Inc. Muddy Waters Capital does not render investment advice to anyone unless it has an investment adviser-client relationship with that person evidenced in writing. Share this article. You agree that the information on this website is copyrighted, and you therefore agree not to distribute this information (whether the downloaded file, copies / images / reproductions, or the link to these files) in any manner other than by providing the following link: https://www.muddywatersresearch.com/research/. With tail revenue adjustments, EHTH’s collection period seemingly extends to 20 years. We detailed three behaviors we were highly confident evidenced widespread bot usage: “Precise Joiners”, “GSX… more, We are short GSX because we conclude that it is a near-total fraud. You accept all risks in relying on the information on this website. NNOX almost certainly used somebody else’s chest images to try to make its ARC machine look re… more, We estimate that – prior to any tail revenue adjustment – it takes EHTH nine years to fully collect each dollar of Medicare Advantage revenue it books. Sorry, your blog cannot share posts by email. You agree that each Muddy Waters Related Person is a third-party beneficiary to these Terms of Use. Latest Reports. On May 18, research firm Muddy Waters told the world it was short GSX Techedu stock. GSX Refutes Muddy Waters Research's Allegations News provided by. Muddy Waters Research is an online research publication that produces due diligence-based reports on publicly traded securities, and Muddy Waters Capital LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Neither Muddy Waters Research nor any Muddy Waters Related Person (including Muddy Waters Capital) are offering, selling or buying any security to or from any person through this website or reports on this website. All reports are for informational purposes only. You further agree that you will not communicate the contents of reports and other materials on this site to any other person unless that person has agreed to be bound by these Terms of Use. He blames options traders, small floats and investors taking advantage of low volumes to push the Chinese stocks back up after his calls. The Company respects Muddy Waters' efforts. If you have obtained research published by Muddy Waters Research or Muddy Waters Capital in any manner other than by download from that link, you may not read such research without going to that link and agreeing to the Terms of Use. GSX: Small Classes, Big Lies (GSX US) May 28, 2020 On May 18th, we published our research on GSX in which we concluded that at least 70% of GSX’s purported users are fraudulent, and quite likely the real percentage of fake users is over 80%.

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