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Muddy Waters is short GSX Techedu 6) My friend Carson Block of Muddy Waters Research was spot on in his warnings about Luckin Coffee, so investors would be wise to carefully consider his … You agree that regardless of any statute or law to the contrary, any claim or cause of action arising out of or related to this website or the material on this website must be filed within one (1) year after the occurrence of the alleged harm that gave rise to such claim or cause of action, or such claim or cause of action be forever barred. These Terms of Use govern current reports published by Muddy Waters Research and supersede any prior Terms of Use for older reports of Muddy Waters Research, which you may download from the Muddy Waters Research’s website. By analyzing the available data, Muddy Waters … Sign up for free newsletters and get more CNBC delivered to your inbox … We are short GSX because we conclude that it is a near-total fraud. Muddy Waters: 'We are short $GSX because we conclude that it is a near-total fraud.' Muddy Waters vowed to “show more GSX fraud” soon. Citron, for example, actually defended Luckin before another prolific short-seller, Muddy Waters, took down the stock. We downloaded GSX’s data from more than 200 paid K-12 classes covering 54,065 unique users. In addition, a former GSX manager corroborated our analysis, and explained various details of GSX’s extensive bot operation. China stock GSX Techedu sold off Monday after short seller Muddy Waters claimed almost all of the online-only education firm's purported students are in fact bots. GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters At GSX, an instructor uses a web platform to teach several hundred students with the help of tutors -- a format that’s increasingly appealing in a world with fewer social interactions. Giving investment advice requires knowledge of your financial situation, investment objectives, and risk tolerance, and Muddy Waters Capital has no such knowledge about you. On May 20, Muddy Waters tweeted in response to GSX. Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. Neither Muddy Waters Research nor any Muddy Waters Related Person (including Muddy Waters Capital) are offering, selling or buying any security to or from any person through this website or reports on this website. The … Our conclusions are based on GSX’s own user and attendance data files (i.e., this is n… more. You agree that use of the research on this website is at your own risk. If you are in the United Kingdom, you confirm that you are accessing research and materials as or on behalf of: (a) an investment professional falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”); or (b) high net worth entity falling within Article 49 of the FPO (each a “Permitted Recipient”). Post was not sent - check your email addresses! All expressions of opinion are subject to change without notice, and neither Muddy Waters Research nor Muddy Waters Capital undertakes to update or supplement any reports or any of the information, analysis and opinion contained in them. We also conclude that GSX greatly understates expenses. You agree that each Muddy Waters Related Person is a third-party beneficiary to these Terms of Use. If you have obtained research published by Muddy Waters Research or Muddy Waters Capital in any manner other than by download from that link, you may not read such research without going to that link and agreeing to the Terms of Use. Muddy Waters Capital is an investment adviser with the U.S. Securities and Exchange Commission and is not registered as investment adviser in any other jurisdiction. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window), Click to share on Tumblr (Opens in new window), Click to share on Pocket (Opens in new window), Click to share on Telegram (Opens in new window). Based on the near total faking of users, we assume that the fraudulent portion of GSX’s revenue is at least equal to the percentage of fraudulent users, although it would not surprise us if the ASP on the real portion of GSX’s business is fraudulently inflated too. On May 18, research firm Muddy Waters told the world it was short GSX Techedu stock. It went through the company's user data and said it's "highly confident" over 70% of users are fake and … They said that a former GSX manager verified their analysis, and … Carson Block, Muddy Waters Capital CIO and founder, joins 'Power Lunch' to discuss why he's shorting GSX Techedu. Reports are based on generally available information, field research, inferences and deductions through the applicable Muddy Waters Entity’s due diligence and analytical process. Muddy Waters Research is an online research publication that produces due diligence-based reports on publicly traded securities, and Muddy Waters Capital LLC is an investment adviser … GSX, the online education firm that Muddy Waters called out in May, soared more than 200% through August before paring some of its gains. You represent that you have sufficient investment sophistication to critically assess the information, analysis and opinion on this website. TAL Education called the report erroneous and deceptive. TAL Education has almost doubled since … However, after analyzing the report, the Company believes that Muddy Waters lacks a basic understanding of GSX's operations. On May 18th, we published our research on GSX in which we concluded that at least 70% of GSX’s purported users are fraudulent, and quite likely the real percentage of fake users is over 80%. Not financial advice. If you access this website, download or receive the contents of reports or other materials on this website on your own behalf, you agree to and shall be bound by these Terms of Use. This website is owned by Muddy Waters Research. Each report specifies the publisher and owner of that report. Muddy Waters peels back the layers, often built up by seemingly respected but sycophantic law firms, auditors, and venal managements. The king of shorting fraudulent Chinese firms, MW, has joined the chorus of about 4-5 other firms singing the same tune … GSX, the online education firm that Muddy Waters called out in May, soared more than 200 per cent through August before paring some of its gains. GSX: Small Classes, Big Lies (GSX US) May 28, 2020 On May 18th, we published our research on GSX in which we concluded that at least 70% of GSX’s purported users are fraudulent, and quite likely the real … The opinions, information and reports set forth herein are solely attributable to the applicable Muddy Waters Entity and are not attributable to any Muddy Waters Related Person (defined below) (other than the applicable Muddy Waters Entity). New York-listed GSX fell 7.4 per cent lower at US$32.84 in New York overnight, after earlier plunging by as much as 16 per cent following the release of the short report on Monday. The research and reports presented on this website express the opinion of the applicable Muddy Waters Entity only. We detailed three behaviors we were highly confident evidenced widespread bot usage: “Precise Joiners”, “GSX… more, We are short GSX because we conclude that it is a near-total fraud. Long holders of GSX face the risk that the margin lenders will be forced to aggressively sell the stock, crashing the price. You should assume that, as of the publication date of a Muddy Waters report, Muddy Waters Related Persons (possibly along with or through its members, partners, affiliates, employees, and/or consultants), Muddy Waters Related Persons clients and/or investors and/or their clients and/or investors have a position (long or short) in one or more of the securities of a Covered Issuer (and/or options, swaps, and other derivatives related to one or more of these securities), and therefore stand to realize significant gains in the event that the prices of either equity or debt securities of a Covered Issuer decline or appreciate. Muddy Waters Research LLC is an American privately held due diligence based investment firm that conducts investigative research on public companies while also taking investment positions that … Muddy Waters によれば,利用者の約 70% が偽造である。この情報は,GSX の学生利用者とその出席率のデータに基づく。Muddy Waters は,200 以上の有料 K-12 [幼稚園から高等学校卒業まで 13 年間] … All reports are for informational purposes only. However, after analyzing the report, the Company believes that Muddy Waters lacks a basic understanding of GSX's operations. The Company respects Muddy Waters' efforts. You further agree that any dispute between you and Muddy Waters Research and its affiliates arising from or related to this report and / or the Muddy Waters Research website or viewing the material hereon shall be governed by the laws of the State of California, without regard to any conflict of law provisions. I am more than happy to report a bull case for GSX providing it is presented with DD. Copyright © 2020 Muddy Waters Research, All Rights Reserved. In relation to the United Kingdom, the research and materials on this website are being issued only to, and are directed only at, persons who are Permitted Recipients and, without prejudice to any other restrictions or warnings set out in these Terms of Use, persons who are not Permitted Recipients must not act or rely on the information contained in any of the research or materials on this website. We conclude that GSX is a massive loss-making business. We conclude that at least ~70% of its users are fake, and we think it’s quite likely that at least ~80% of its users are fake. We refer to Muddy Waters Research and Muddy Waters Capital collectively as “Muddy Waters” and individually these entities are referred to as a “Muddy Waters Entity”. The failure of Muddy Waters Research or Muddy Waters Capital to exercise or enforce any right or provision of these Terms of Use shall not constitute a waiver of this right or provision. The … But MW doesn't regard this as an … BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters … Muddy Water's report details its allegations and explains how it found unusual patterns among droves of GSX … GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters We conclude that at least ~70% of its users are fake, and we think it’s quite likely that at least ~80% of its users are fake. Use of Muddy Waters Research reports is limited by the Terms of Use on its website, which are as follows. The reports are the property of the applicable Muddy Waters Entity that published that report. To the best of the applicable Muddy Waters Entity’s ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources that the applicable Muddy Waters Entity believe to be accurate and reliable, and who are not insiders or connected persons of the Covered Issuers or who may otherwise owe a fiduciary duty, duty of confidentiality or any other duty to the Covered Issuer (directly or indirectly). Muddy Waters Capital does not render investment advice to anyone unless it has an investment adviser-client relationship with that person evidenced in writing. Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. You further agree to do your own research and due diligence before making any investment decision with respect to securities of the issuers covered herein (each, a “Covered Issuer”) or any other financial instruments that reference the Covered Issuer or any securities issued by the Covered Issuer. Sorry, your blog cannot share posts by email. Amazingly, Chairman Chen has found a way to make GSX shares even more dangerous for long holders – he has pledged at least $318 million of stock. Under no circumstances should any of these reports or any information herein be construed as investment advice, or as an offer to sell or the solicitation of an offer to buy any securities or other financial instruments. Our conclusions are based on GSX’s own user and attendance data files (i.e., this is not from “scraping” data). You accept all risks in relying on the information on this website. However, such information is presented “as is,” without warranty of any kind, whether express or implied. Further, any report on this site contains a very large measure of analysis and opinion. Muddy Waters’ report came weeks after Citron Research called GSX “ the most blatant Chinese stock fraud since 2011.” Citron accused … You (or any person you are acting as agent for) agree to hold harmless Muddy Waters Research, Muddy Waters Capital and its affiliates and related parties, including, but not limited to any principals, officers, directors, employees, members, clients, investors, consultants and agents (collectively, the “Muddy Waters Related Persons”) for any direct or indirect losses (including trading losses) attributable to any information on this website or in a research report. “Given the infamy of short sellers and unchanging methods, a … GSX Refutes Muddy Waters Research's Follow Up Report GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in … Without users, there is no revenue. Muddy Waters Research is an online research publication that produces due diligence-based reports on publicly traded securities, and Muddy Waters Capital LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Muddy Waters Research is affiliated with Muddy Waters Capital. Previously, GSX stated that the short report is confused and full of ignorance about its business. Muddy Waters’ misunderstanding may be because it didn’t try its live courses, or it did and ignored part of the process, a GSX spokeswoman wrote in an email. By downloading from, or viewing material on this website, you agree to the following Terms of Use. You agree that the information on this website is copyrighted, and you therefore agree not to distribute this information (whether the downloaded file, copies / images / reproductions, or the link to these files) in any manner other than by providing the following link: https://www.muddywatersresearch.com/research/. Copyright © 2020 Muddy Waters Research, All Rights Reserved. GSX data by YCharts. So what On May 18, Muddy Waters said it was short GSX Techedu stock because the company was "a near-total fraud." Muddy Waters Research is an online research publication that produces due diligence-based reports on publicly traded securities, and Muddy Waters Capital LLC is an investment adviser registered with the … GSX has said Muddy Waters doesn’t understand its business model. Regardless of how one cuts it though, GSX is an almost completely empty box. GSX Refutes Muddy Waters Research's Allegations BEIJING , May 19, 2020 / PRNewswire / -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after … Muddy Waters' Carson Block on his latest short, GSX Techedu May 18, 2020 Muddy Waters Capital Founder & CIO Carson Block joined Yahoo Finance's Jen Rogers, Myles Udland, and Dan … TAL Education has almost doubled since Block … The reports on this website have been prepared by either Muddy Waters, LLC (“Muddy Waters Research”) or Muddy Waters Capital LLC (“Muddy Waters Capital”). You further agree that you will not communicate the contents of reports and other materials on this site to any other person unless that person has agreed to be bound by these Terms of Use. With respect to their respective research reports, Muddy Waters Research and Muddy Waters Capital makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. Neither Muddy Waters Research nor Muddy Waters Capital will update any report or information on its website to reflect changes in positions that may be held by a Muddy Waters Related Person. GSX Refutes Muddy Waters Research's Follow Up Report News provided by GSX Techedu Inc. May 29, 2020, 06:49 ET Share this article BEIJING, May 29, 2020 /PRNewswire/ -- GSX Techedu … Muddy Waters Research, Muddy Waters Capital and/or the Muddy Waters Related Persons intend to continue transacting in the securities of Covered Issuers for an indefinite period after an initial report on a Covered Person, and such person may be long, short, or neutral at any time hereafter regardless of their initial position and views as stated in the research report published by Muddy Waters Research or Muddy Waters Capital. If any provision of these Terms of Use is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties’ intentions as reflected in the provision and rule that the other provisions of these Terms of Use remain in full force and effect, in particular as to this governing law and jurisdiction provision. However, investors should still hear them out to decide whether GSX … Muddy Waters Research is an online research publication that produces due diligence-based reports on publicly traded securities, and Muddy Waters Capital LLC is an investment adviser registered with the … The Company respects Muddy Waters' efforts. Muddy Waters has made its core business holding short positions of Chinese companies on U.S. exchanges and exposing what they believe to be fraudulent activity. Posted with permission. If you access this website, download or receive the contents of reports or other materials on this website as an agent for any other person, you are binding your principal to these same Terms of Use. Muddy Waters said they downloaded data from more than 200 paid K-12 education courses which equaled 54,065 unique users. Carson Block is still short GSX Techedu Inc (NYSE: GSX) despite the stock's momentum in the opposite direction, the notable short seller said Wednesday in a Bloomberg TV interview.What … This limitation of liability applies regardless of any negligence or gross negligence of Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons. You understand and agree that Muddy Waters Capital does not have any investment advisory relationship with you or does not owe fiduciary duties to you. In no event shall Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons be liable for any claims, losses, costs or damages of any kind, including direct, indirect, punitive, exemplary, incidental, special or, consequential damages, arising out of or in any way connected with any information on this website. Read More Latest Reports Joyy Inc. MW is Short Joyy … Muddy Waters Initiating Coverage on TRE.TO, OTC:SNOFF – Strong Sell Sino-Forest Corporation 2011-06-02 Muddy Waters Initiating Coverage on DGW – Strong Sell Duoyuan Global … Despite their recent swoon, the … You knowingly and independently agree to submit to the personal and exclusive jurisdiction of the state and federal courts located in San Francisco, California and waive your right to any other jurisdiction or applicable law, given that Muddy Waters Research and its affiliates are based in San Francisco, California. This is not an offer to sell or a solicitation of an offer to buy any security. 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