12.12% of the company's float was short sold at 15 January which is a 37% increase on 31 December, so either the results or the market response to them will be interesting. After Hindenburg's report was published the company said only that the report was 'misleading' and denied the allegations, and that the company believes 'the results speak for themselves', but has made no other response. The SP currently at $233 remains at roughly half the high of $464 on 25 November.
You're right that it consistently beats expectations and after the Q3 2024 report in November 2024 the SP rose by 75% on revenue growth of 71.3% and a 1,000% year on year increase in net income. The stock price ended up with a 3337.50% increase over the past year. But there is limited coverage and the growth rate is extremely volatile, with estimates ranging from 38% - 47% year on year. The basis of the Hindenburg report covered questionable subscription growth, insiders selling out or cashing out with a margin loan, a 20% decrease in customer numbers in 3 years, a massive drop in merchant numbers and risky lending practices at nil margin. The report pointed out that major retailer partnerships were announced but never materialised and provisions for credit losses grew by 130%.
Either the shorts get toasted or the SP gets whacked again - it will depend on the results and how they are received. At this stage it looks like an each way bet.
ZIP Price at posting:
$2.47 Sentiment: Sell Disclosure: Not Held
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