Commenting on egregious valuation gaps. Not investment advice.
Joined June 2021
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Ragnarok Research is Long $TACT: Our asks to the current board of directors to drive shareholder value.
We are long $TACT because we see tremendous value trapped within the company but we believe the current board of directors isn't incentivised enough and incapable to realise this trapped value, and therefore recommend changes to the board of directors and its current strategic review process.
Full report at: researchragnarok.substack.co…
Our report dives deep into a few governance concerns entrenched within the board and massive conflicts of interests via related party transactions and its audit committee that we believe is stopping $TACT's directors from being incentivised to do right by shareholders, as well as our recommendations for the appointment of a new Chairman of the board and the election of a new director who has deep industry acumen.
Lastly, our report makes the case that the immediate course of action the board should take to do right by shareholders is to immediately start a sale process for its BOHA! segment and only then consider the sale of the casino segment. We believe the careful execution of our recommendations regarding the BOHA! and the casino segments' sales can realise value of upto 80%-140% higher than today's prices.
@ClarkSquareCap
@SpecialSitsNews
@InvestSpecial
@specsitsdigest
@taobanker
@leevalueroach
@DeepSailCapital
@NickNemo17
@RandianCapital
@OracleNYSE
@DarkfireCapital
@majgeoinvesting
@GeoInvesting
@SimeonResearch_
Ragnarok Research retweeted
In Dec 2016, @muddywatersre called Nidec (6594.T) "a gigantic stock promotion" and valued it at ¥4,764, half its ¥9,888 price.
The report alleged:
- Missed targets: 2015 sales goal missed by 41%
- About 0.05% organic growth a year, FY2011 to FY2015
- ¥36bn in write-offs that "could have been improper"
- China channel stuffing, per four former employees
- Governance gaps, including a ¥14.5bn loan to management
A decade later, Nidec has booked a ¥632bn (about $4bn) writedown and sits on the TSE special alert list. Muddy Waters tells Bloomberg the third-party probe "clearly omitted several problematic years."
Price move from the pre-report close (split-adjusted ¥2,472) to the Nov 5 close (¥1,673): -32%.
Ten years after his bet on Nidec, short seller Carson Block, whose hedge fund is Muddy Waters Capital, says the current scandal engulfing the motor maker shows Japan's corporate reforms haven't gone far enough. ebx.sh/D3izUe
Ragnarok Research retweeted
Trevor Milton's lawsuit against an FBI agent has rolled to a stop. It lasted 17 days.
On October 30th, Milton voluntarily dismissed Milton v. Essick without prejudice, which means he can refile. The notice gives no reason.
The same day, the U.S. Attorney's Office in Utah asked the court to seal the agent's personal address and contact details, citing its interest in "protecting the safety of its law enforcement officers."
No judge ever ruled on the claims. Last week Milton told us "it'll all come out in the lawsuit." Our reporting found the person running the two X accounts at the center of the case does not appear to be the agent.
We've updated our piece with the new filings:
activ8insights.com/handlewit…
We didn't even have time to get into the tweets Trevor has been deleting.
Ragnarok Research retweeted
1/x: We short $SHLS because of serious problems we have found with some of the deals they have announced to shore up their legacy business, which has recently experienced significant margin compression. $SHLS touted an MOU with UGT Renewables/Sun Africa, but we discovered this company is in chaos due to the actions of its founder, a convicted felon. We are also skeptical of a data center pivot that relies heavily on a tiny battery company, Terraflow, which apparently has only raised ~$20m so far and whose new headquarters was still under construction when our investigator visited earlier this month.
Ragnarok Research retweeted
Hi @nathanfielder, not sure if you take recommendations, but You Can See Everything was so good it deserves a sequel. Same genre, different founder.
This is the craziest fucking thing I’ve read in a long, long time.
@HindenburgRes
Great investigative work by @Activ8Insights
Trevor Milton says an FBI agent posted from two anonymous X accounts.
We talked to the man behind them. He does not appear to be the FBI agent.
And the owner of the account Milton's lawsuit calls its "Utah correspondent" doesn't live in Utah. So why file in Utah?
activ8insights.com/handlewit…
Ragnarok Research retweeted
Pelican since the start: 10/10
@Pelicanwayre has <1500 followers
From breakoutpoint.com database:
(Past performance is not indicative of future results.)
Congrats @RandianCapital for this call about a year ago!
Bumble is in "advanced talks" to go private at ~$1bn...for context, peak valuation after the IPO was about $14bn
Didn't realize they refi'd their debt this April at S+800 (issued at 94)! If this deal takes the loan out at par, those lenders made ~12% in six months (20%+ IRR).
Where do you think new debt on this would price?
$BMBL
Pleasant surprise!
Congratulations @Pelicanwayre and @WhiteResearch for your excellent reporting and we would also like to take this opportunity to do a victory lap on our reporting too! copy of report published here: whitediamondresearch.com/arc…
@Activ8Insights @CodfishJohnny @JackPatrick06
Ragnarok Research retweeted
JF Smart Investment（09636.HK）——Outpacing Northern Myanmar Syndicates: The Shanghai-Listed Enterprise Generating ¥3.9 Billion a Year Through Telecom and Online Fraud!
Link:drive.google.com/drive/folde…
Ragnarok Research retweeted
Always love a good bank short to start my morning...
@ResearchGrizzly Short Report on $RBI.VI
We are Short Raiffeisen Bank International AG. $RBI $RBI.VI
Our New Report is out Now: Raiffeisen Bank International-Linked Customs Records Show $1.19 Billion in Trade Matching Sanctions and Export-Control Restrictions While €12.6 Billion Remains Trapped in Russia
Read our Report Here: grizzlyreports.com/rbi/
Just a day after we published, 5.1% owner Chuck Gilman asks for the appointment of Dan Friedberg to the board, the same candidate we proposed!
Huge win in our books.
Ragnarok Research is Long $TACT: Our asks to the current board of directors to drive shareholder value.
We are long $TACT because we see tremendous value trapped within the company but we believe the current board of directors isn't incentivised enough and incapable to realise this trapped value, and therefore recommend changes to the board of directors and its current strategic review process.
Full report at: researchragnarok.substack.co…
Our report dives deep into a few governance concerns entrenched within the board and massive conflicts of interests via related party transactions and its audit committee that we believe is stopping $TACT's directors from being incentivised to do right by shareholders, as well as our recommendations for the appointment of a new Chairman of the board and the election of a new director who has deep industry acumen.
Lastly, our report makes the case that the immediate course of action the board should take to do right by shareholders is to immediately start a sale process for its BOHA! segment and only then consider the sale of the casino segment. We believe the careful execution of our recommendations regarding the BOHA! and the casino segments' sales can realise value of upto 80%-140% higher than today's prices.
@ClarkSquareCap
@SpecialSitsNews
@InvestSpecial
@specsitsdigest
@taobanker
@leevalueroach
@DeepSailCapital
@NickNemo17
@RandianCapital
@OracleNYSE
@DarkfireCapital
@majgeoinvesting
@GeoInvesting
@SimeonResearch_
Ms. Olinger, who is the chairman of the board with just a 0.3% ownership of the company’s shares outstanding is part of the two-person bloc interlock in which the other company is a customer of TACT. This makes us believe that she is unfit to be the chair of the board. Thus, we recommend that Mr. Dan Friedberg be the chairman of the board because of his substantial 10% stake in the company, allowing his interests and that of the shareholders be aligned and hopefully lead the board to facilitate the immediate sale of the BOHA! segment.
We recommend the addition of one or two directors to the board with deep knowledge of both the BOHA! and casino businesses. We call upon the board to consider Bart Shuldman as we believe that he is the right candidate to execute a quick selling of the BOHA! unit to the right strategic buyer at the highest price, as well as the casino segment since we think his ideas of the company’s future aligns with what is in the best interests of the shareholders. Moreover we also ask the board consider the removal of other incumbent non-incentivised members; Fix the governance problems and conflicts of interests entrenched within the Board, and to refocus the current efforts of a strategic review to sell the BOHA! segment first instead of/in addition to the selling of Casino, rather than vice versa.