Andrew Left Shorting Shopify

Citron Research a firm run by legendary short seller Andrew Left The Bounty Hunter Of Wall Street released a detailed report yesterday on Shopify accusing the company for violating federal trade commission legislation. See the report here: Citron Exposes The Dark Side Of Shopify 

Shopify is a platform provider for e-commerce businesses, they provide all the backend of an e-commerce store to help entrepreneurs to focus more on the product that they produce and sell online. Shopify is up 124% year-to-date notwithstanding that it closed down 11.5% on the bad news from Citron Research. This marks their worst trading day this year.

Andrew is basically claiming that Shopify is a business dirtier than Herbalife see his Tweet below. Another Research Firm Baird wrote their rebuttal to Citron basically rubbishing the claims and saying this pull back Citron Research Creates A Buying Opportunity 
Here’s another guy on Seeking Alpha defending Shopify  Shopify Response To Citron 
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Andrew Left has a good track record as a short seller and he’s not known for shooting from the hip, this is a guy that goes for the jugular! He has the nose as sharp as a bloodhound to sniff all the accounting frauds, companies that defraud and mislead investors, naughty equity analysts. He’s a cross between a no nonsense detective with an eye for detail and an obsessive forensic accountant. Let us not forget the old adage that says where there’s smoke there’s fire. I wouldn’t touch this one with a ten foot barge pole!
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Are Balanced Funds broken?

The Gradidge Patch

I have been a believer in balanced funds for many years now. The simple balanced fund offers investors good exposure to growth assets, and lower volatility than the market. A well run balanced fund can outperform the equity market over time if the manager is able to get asset allocation right. Numerous balanced funds have long term track records with better than market returns so it possible. The rise of passive balanced funds has added an additional dimension to the market as investors can now access the benefits of balanced funds at a fraction of the cost that most active managers charge.

A few weeks back I sat for an annual portfolio review with a client. He has been a client for three years and like many investors, was concerned about lower than expected returns over the period. After the usual discussion around market conditions, he asked for a bit…

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A Dozen Things I’ve learned from Stanley Druckenmiller About Investing

25iq

“Stan may be the greatest moneymaking machine in history. He has Jim Roger’s analytical ability, George Soros’s trading ability, and the stomach of a riverboat gambler when it comes to placing his bets. His lack of volatility is unbelievable. I think he’s had something like five down quarters in 25 years and never a down year. The Quantum record from 1989 to 2000 is really his. The assets grew from $1 billion to $20 billion over that time and the performance never suffered. Soros’s record was made on a smaller amount of money at a time when there were fewer hedge funds to compete against.”  – Inside the House of Money

 

1. “I think David Tepper is awesome and if he’d take my money, I’d give him some but I think his fund is closed.”

I included this quote to make the point that even though a very…

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Behave and Save

Vestact - Money with a dash of funny

“By saving say 10% of your income you create a very handy buffer so the next time you have an emergency, instead of tapping into your savings (or worse into debt) you can just divert that buffer to the emergency expense. Another benefit is that you get used to living on less, so if the unthinkable happens where you no longer have a job, your savings last you that much longer. A more rosy alternative is that living on less gives you the freedom to change from the job that you are not too keen on?”


To market to market to buy a fat pig After a red start to the day the All Share finished the day in the green, up a little over 0.5%. Banks recovered from being down over 1.5% to finishing in the green for the day. Most of the gains though came through our dual…

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Complaining about Black Tax ain’t going to help anyone…

The Gradidge Patch

Black Tax is real. I know because I pay it. The hashtag #blacktax has a way of making an appearance on Twitter reasonably often. It is one of those topics that never seems too far away from the discussion, especially among Black South African millennials and Generation Xers.

However, as much as we South Africans like to think that we are somehow unique or special, the reality is that Black Tax is a global phenomenon known elsewhere as the ‘Sandwich Generation’.

What is Black Tax?

Black Tax (BT) refers to those extra expenses that Black people have primarily as a result of being Black in South Africa today. It specifically refers to the money that we have to spend on our extended families; in the form of a monthly stipend to multiple households, or paying for the education a number of children that are not ours, or having to contribute…

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