We publish research reports and notes on publicly traded companies in the US and Europe. Our research is sector-agnostic and tends to be focused on forensic accounting. Since 2022, we’ve been ranked as one of the top five research firms worldwide by Diligent Market Intelligence, the leading boardroom and shareholder activism solution.
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Track record
In late 2023, we uncovered that AerSale Corporation (NASDAQ: ASLE) was sued by a competitor, seeking an injunction and millions of dollars in damages. The patent infringement lawsuit was never disclosed to the company’s shareholders. Furthermore, we found that AerSale’s key product, AerAware, lacks market demand, as a 2022 FAA report highlighted the redundancy of such technology. No airline has ordered AerAware to date, despite AerSale’s CEO boasting about a “big boy customer” on various occasions. Since we published our report, one of the company’s co-founders announced his ad-hoc retirement, and AerSale’s cornerstone investor, Leonard Green & Partners, decided to sell its 18% stake.
In July 2023, we reported on Runway Growth Finance Corporation (NASDAQ: RWAY), a venture debt lender from Menlo Park, California. We uncovered that the company and its external advisor propped up RWAY’s net asset value by not accounting for investments that are in bankruptcy-like status (so-called ABC liquidation) at fair value, swapping debt for equity, and giving concessions to portfolio companies that are in distress. Ultimately, Runway wrote off the non-performing investments (we called them out on) within a quarter, which drew the attention of sell-side analysts who questioned why Runway valued these investments at cost in the previous quarter. Since we published our report, Runway Growth’s CEO has been on leave, and its cornerstone investor, Oaktree Capital Management, has begun to sell its 51% stake in the company.
In June 2023, we published on Symbotic (NASDAQ: SYM), a self-proclaimed “A.I.-powered robotic technology platform” but we found that the company’s products are barely on par with competitors’ solutions. Former employees told us that potential customers would only talk to Symbotic because Walmart hired the company to refit its supply chain. Otherwise, nobody would take them seriously. However, we uncovered that the key negotiator for the Walmart contract–a senior vice president at Walmart–quit weeks before the final agreement was signed and began working at Symbotic just weeks after the ink on the contract had dried. Since we published our findings, insiders sold more than $900 million of stock, the Walmart-turned-Symbotic executive resigned, and the company’s CFO retired at age 55.
In March 2023, we reported on mortgage lender Arbor Realty Trust (NYSE: ABR). We uncovered material weaknesses in its internal reporting, hundreds of millions of dollars missing, and undisclosed ownership in a one billion dollar multifamily portfolio with the properties’ net profits not flowing to ABR. The company rejected our findings and announced a share repurchase program, just to issue more than 13 million new shares in the subsequent months. As a cheerleader to management, Leon Cooperman called us idiots on the earnings call but subsequently sold 30% of his position in the months that followed.
In late 2022, we uncovered that the CEO’s son of small-town bank Provident Bancorp (NASDAQ: PVBC) ran the company’s digital asset lending segment into the ground by lending money against cryptocurrencies and crypto miners as collateral. The son’s employment was undisclosed to shareholders, and basic risk management in PVBC’s crypto lending was not performed due to the segment head’s immediate relationship to the bank’s CEO. The board of directors failed to perform its supervisory duties while being handed favorable contracts. A month later, on December 23, 2022, Provident Bank’s CEO resigned. Due to the crypto lending business and failed corporate governance, PVBC lost more than $50 million in the span of a few months, evaporating the bank’s aggregated net profits since going public.
In July 2022, we reported on the Swedish CPaaS company Sinch AB (SFB: SINCH). We uncovered Sinch’s doubtful revenue recognition practices through billions of unbilled account receivables, an undisclosed qualified opinion issued by Sinch’s auditor, billions of reported receivables in shut-down Australian subsidiaries, and flawed risk management. After market close on the same day, Sinch issued an ad hoc statement disclosing that the company overstated its net income by SEK 162 million. Days later, the company’s CEO resigned effective immediately – the night before Sinch’s Q2 earnings call. In Sinch’s detailed response, the company acknowledged our findings. Two months later, Softbank sold its 5% stake in Sinch at an estimated 80% loss.
In March 2022, we published on the German EV company Sono Group (NASDAQ: SEV) and uncovered that the company made unrealistic promises to reservation holders, leading to increased cancellations. We highlighted that the management is driven by false idealism and to play start-up founder. We concluded that the company won’t produce its signature EV called Sion and will likely go bankrupt due to doubtful prospects of funding. In early 2023, Sono Motors filed for insolvency.
In early 2022, we reported on Bitcoin mining company Northern Data AG (XETRA: NB2). We discovered that the company had purchased shell companies for more than EUR 900 million from related parties. Most of the assets were not real and outstanding payments to be made by the shell companies to Northern Data were offset against the final acquisition of these shell companies. Since then, the company’s COO has resigned, two CFOs and two Chief Legal Officers have resigned. Northern Data finally published its 2022 annual report in March 2024, reporting a EUR 266 million net loss and writing off hundreds of millions euros in previously acquired assets. Weeks later, the company switched from KPMG to a small-town German auditor specializing in auditing small businesses and individuals.