BFYT: Southwell’s Zebra

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Last week attorneys general from seven states filed suit against health insurance telemarketers who allegedly made at least 1 billion illegal robocalls using fake numbers that included messages falsely claiming to be affiliated with large insurance companies. FCC documents lead us to conclude that a significant portion of these robocalls were used to generate “leads” for brokers within BFYT’s network to sell policies to unsuspecting consumers. Read More

INMD: Don’t Get Your Face Burned Off

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We are short InMode (NASDAQ: INMD). We believe the company’s promotional narrative is premised on falsehoods and that management has simply not been honest with investors or patients about the safety of its purportedly revolutionary aesthetic machines. Read More

Canaan Fodder

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We view CAN as the latest US-listed Chinese company to have deceived investors about its business. Our investigation of this bitcoin mining machine maker reveals undisclosed related party transactions, irregularities involving many customers and distributors, as well as a business model that we view as broken.  Read More

NBIX: The Tiger’s Stripes

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We are short Neurocrine Biosciences (NASDAQ: NBIX).  We see distinct risks that the company’s sales growth is fueled by the same type of kickback scheme that recently devastated Avanir Pharmaceuticals. Read More

VSLR: Fiddler on the Roof

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Vivint appears to have largely concealed a growing pattern of undisclosed lawsuits alleging the company has engaged in a nationwide fraud involving forged customer contracts.  The lawsuits specifically allege that Vivint has forged the signatures of homeowners, complete strangers, relatives, neighbors, and even a dead person onto sham solar contracts.  Court documents suggest Vivint’s corporate office even has spreadsheets keeping track of the fraud allegations via an internal system. Read More

INS: A Wolf in Pete’s Clothing

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Relentless hype on social media has propelled shares to all-time highs and a monster valuation of roughly 15x trailing sales and 40x trailing EBITDA. While INS is touted as a fintech set to disrupt the payments space with breakthrough technology, we believe the company is merely a glorified Indian outsourcing business that, like so many other stock promotions, will leave investors chasing the prospect of quick riches disappointed by the underlying economics and growth prospects. Read More

HIIQ: The Big Deception

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We believe HIIQ management has made a series of misleading statements that conceal thousands of customer complaints that have not been disclosed to investors. Read More

HIIQ: New FTC Revelations Contradict Management’s Assertions

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A recent court filing made by the Federal Trade Commission reveals that HIIQ has continued to charge consumers millions of dollars for thousands of “virtually worthless insurance products” issued by HIIQ to families who the FTC says were defrauded by boiler rooms run by Steve Dorfman’s Simple Health companies. We believe these new documents contradict management’s assertions and suggest the company is still harvesting cash from the victims of a giant alleged fraud. Read More