Investing into public stock can be a risky endeavour, but not if you keep it simple and follow the right recipe. Let’s look at a recent example, where a competent investor made an investment on a Friday and generated a 10+% profit (about € 500,000) just over the weekend. And that without spending any money, […]
A Bear Raid
In 2022, Sinch was shorted by about 15% of its stock, one of the highest values in Europe for a company of this size. In absolute numbers that meant that the short sellers would have to buy Sinch stock for several 100 million Euros to get out of their short positions. In Europe, short sellers […]
Softbank – A Quality Investor ?
A Good Investor is a Blessing, right? „We are long-term, patient investors who stand by our founders through both good times and tough times. By removing the constraints of capital, we seek to enable founders to stave off short-term pressures and focus on building companies that last.“ Softbank Website On Nov 30, 2020, Sinch announced […]
Anonymous Short Seller Liar
The next step in the bear raid is akin to a smear campaign, with whispers and rumors about the company spread by unknown sources. These rumors can be anything that portrays the target company in a negative light, such as allegations of accounting fraud, an SEC investigation, an earnings miss, financial difficulties, and so on. […]
A Short-Selling Story. Bear: Sinch. Hunter: Marshall Wace
In 2000, as CEO of my first tech startup, we were preparing for an IPO. We did our road show and met with institutional investors in various countries. I still remember a presentation in Frankfurt where an experienced fund manager told me that he liked what we do, but would never invest. Of course I […]
Sinch- Stock Price Evolution
What is a Fair Value for a Public Company? Simple question, but difficult to answer. The trivial answer is: “The Market” determines the Fair Value. But how can the value of something vary so greatly (i.e. multiply by 10x and then decrease again to 1x)? You would think that the triggers for such change can […]