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No stock has been more heavily attacked by activist short sellers than GSX Techedu跟谁学

No stock has been more heavily attacked by activist short sellers than GSX Techedu跟谁学

本文转自华尔街日报

No stock has been more heavily attacked by activist short sellers this year than GSX Techedu Inc., GSX +0.73% a New York-listed Chinese tutoring company.

So far, GSX has come out on top. After quintupling this year, it is one of the world’s most valuable education businesses, with a market capitalization of $27.3 billion.

“Shorting this, it has been just a nightmare,” said Richard Smatt, a mathematics professor at Flagler College in St. Augustine, Fla., who said he is sitting on tens of thousands of dollars in unrealized losses on GSX.



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One of the Year’s Worst Short Bets Defies Scathing Reports and an SEC Investigation
No stock has been more heavily attacked by activist short sellers than GSX Techedu, but the Chinese tutoring company has so far come out on top

Sixteen months ago, GSX was valued at $2.5 billion after completing a $216 million initial public offering on the New York Stock Exchange.
PHOTO: RICHARD B. LEVINE/ZUMA PRESS
By Jing Yang and Xie Yu
Oct. 12, 2020 5:38 am ET
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No stock has been more heavily attacked by activist short sellers this year than GSX Techedu Inc., GSX +0.73% a New York-listed Chinese tutoring company.

So far, GSX has come out on top. After quintupling this year, it is one of the world’s most valuable education businesses, with a market capitalization of $27.3 billion.

“Shorting this, it has been just a nightmare,” said Richard Smatt, a mathematics professor at Flagler College in St. Augustine, Fla., who said he is sitting on tens of thousands of dollars in unrealized losses on GSX.

Short sellers have made killings on stocks such as Nikola Corp. and Luckin Coffee Inc. But in these volatile and speculative markets, the playbook has also flopped. Despite more than a dozen scathing research reports that have accused GSX of inflating its revenue and other questionable practices—allegations that sparked an investigation by the U.S. Securities and Exchange Commission—losses have mounted for investors who have bet against the six-year-old company.

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GSX is one of the worst-performing bets for short sellers globally this year, as measured by the stock’s performance since the first short-seller report against the company was released in February, according to Breakout Point, a research service. Bearish investors also have suffered heavy losses betting against Tesla Inc., whose stock is now worth more than five times what it was at the start of the year.

Just 16 months ago, Beijing-based GSX was valued at $2.5 billion after completing a $216 million initial public offering on the New York Stock Exchange. The company provides after-school online tutoring to elementary-to-high-school students all over China, as well as professional training for adults in subjects such as finance and education, and has reported triple-digit revenue growth since 2017. GSX says it collects course fees from students, who attend live lectures in large classes or receive tutoring in smaller groups in mathematics, foreign languages and other subjects.

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Harvey Yan

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