SHOP til you drop

For those wanting to ride the SHOP train, this may be a good buying op. As he did with UBNT (and others), Andrew Left (Citron) has put out some nasty “research” whose negativity seems to be his investment modus operandi:

https://www.benzinga.com/analyst-ratings/analyst-color/17/10…

As Saul recently said, “I think they will surprise and have positive adjusted earnings a quarter early (Sept quarter). Revenue is almost all recurring in one sense or another.”

Agreed.

Pete

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I just bought shares at $103.00

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Gotta wonder why this one voice shakes the market.

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Gotta wonder why this one voice shakes the market.

It’s only natural that fear is a counterbalance to greed.

Also, Cramer gives this guy an unchallenged voice to say whatever he wants to say.

As Saul recently said, “I think they will surprise and have positive adjusted earnings a quarter early (Sept quarter). Revenue is almost all recurring in one sense or another.”

I have been thinking about this factor and how it might play into Left’s comprehensive strategy (if he has one).

Being a legitimate market moving force via his Tweets, Left’s strategy could include 1)finding a highly-priced Rule Breaking company possibly with some upcoming good news, 2) shorting quietly knowing the lofty valuation has some shakiness that is exploitable, 3) releasing research with “short thesis” (which might be downright shoddy work in some cases), 4) covering short or substantial portion of short within a short time frame after release of “report” has done its work, 5) buying calls which will likely rapidly rise as shoddy short thesis is debunked as being shoddy and (well-warranted) positive sentiment carries the share price back up.

I might be giving Left too much credit to suggest he might be making money both on the short and subsequent recovery, particularly as he seems to advertise himself almost exclusively as a short seller…but these attacks on UBNT and SHOP in close succession have caused me to contemplate a lot (Note: I have no plans of attempting to implement the full strategy outlined above, as the short attack portion would cause me to feel like a complete and utter sleazeball and I could not lie through my teeth, nor do I have any delusions that I could gain the notoriety to become a market mover to the extent that Left/Citron has become.)

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