MI145: Short Selling and Uncovering Corporate Misconduct w/ Edwin Dorsey

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Education, Investing, Business

4.6 • 592 Ratings

🗓️ 24 February 2022

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

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Summary

IN THIS EPISODE, YOU’LL LEARN: 06:26 - What short selling is and why Edwin puts most of his focus on exposing bad companies. 09:41 - What to be mindful of when shorting a company. 12:52 - The biggest red flags Edwin looks for in performing his research. 19:38 - The many resources Edwin uses in performing his stock analysis. 21:41 - What Edwin uncovered in researching Roblox, AgEagle Aerial, and Embark Technology. 44:21 - Why Edwin is bullish on Twitter’s stock. And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members. Enter the Millennial Investing Giveaway here. Robert and Clay’s tool for picking stock winners and managing our portfolios: TIP Finance. Get access to the Bear Cave. Follow Edwin on Twitter. Dig into management turnover at Insider Score. SEC Website to search for filings - EDGAR. Search lawsuits on PACER. Auditor search tool - PCAOB. Tune into calls with the experts with Tegus. Look for red flags with Bedrock AI’s tool. Related episode: MI139: How to Beat Inflation w/ Joe Brown. Check out our Investing Starter Packs about business and finance. Are you a looking to start investing? Check out our article on How to Invest in Stocks: The Ultimate Guide for Beginners. SPONSORS Support our free podcast by supporting our sponsors: Fiscal.AI Read this episode’s transcript and full show notes on our website. Connect with Edwin: Website | Twitter Connect with Clay: Twitter HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.8	A high degree of executive turnover,
0:04.8	especially at a smaller company, is a big red flag.
0:07.6	There's one company called Canelo.
0:09.4	They make credit card readers for vending machines.
0:11.9	They've had seven different CFOs in the last five years.
0:15.4	I'm like, you know, something's off there.
0:17.7	And it's probably accounting related.
0:19.6	If you keep going through CFO after CFO after CFO.
0:26.6	On today's episode, I am joined by Edwin Dorsey.
0:30.8	Edwin writes the popular newsletter, The Bear Cave, which exposes bad companies and corporate
0:36.1	misconduct. This makes for fertile hunting ground
0:38.9	for short sellers looking to profit on the downfall of the company. Edwin first gained massive
0:44.3	attention after he successfully exposed Care.com for an unimaginable amount of negligence that
0:50.0	ultimately led to the collapse of the stock. In 2021, the Bear Cave published deep dive critical
0:55.8	investigations on 18 public companies. Of those 18, 16 are currently trading lower, and the average
1:02.9	performance is negative 35.2% as of the end of the year, while the S&P 500 was up 28%. During the episode, I chat with Edwin about what
1:14.0	short selling is, why short selling is a necessary part of a well-functioning free market,
1:19.4	what to be mindful of when shorting a company, the biggest red flags he looks for in performing
1:24.6	his research, what Edwin uncovered in researching Roblox, Aguagle
1:29.6	Ariel, and Embarked Technology, why Edwin is bullish on Twitter and much more. I've really
1:36.3	enjoyed this conversation with Edwin as he has many unique ways in researching a company
	...

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