There is nothing like a profit upgrade to ruin a short seller’s day. And we’re assuming short sellers activist J Capital’s clients were simmering on Tuesday when his latest target, Nearmap, upped his 2021 finance sales forecast.
J Capital asked its clients to bypass Nearmap in a research report released on February 10, as its research clearly showed Nearmap’s U.S. business was in trouble. The main driver behind Nearmap’s forecast upgrade three months later is strong sales in the United States.
J Capital’s other high-profile ASX target is another tech player that divides WiseTech Global. But last February, WiseTech was one of the few companies able to raise its full-year EBITDA guidance thanks to better-than-expected performance.
In fairness to J Capital’s Tim murray and Anne Stevenson-Yang, Nearmap’s shares closed at $ 2.33 the day before its short controversy was released and changed hands for $ 2.36 on Wednesday just before it entered a trading halt linked to no lawsuits. disclosed. Which might have something to do with the patent issues first reported by J Capital in his short Nearmap thesis.
Meanwhile, WiseTech shares closed at $ 34.37 the day before J Cap’s first October 2019 research, and haven’t quite matched that level since, as both bulls and bears have. struggling to digest the completion of no less than 39 acquisitions by WiseTech since its initial public offering in 2016 at just $ 3.35 per share.
Elsewhere, another short-selling activist Soren Aaandahl’s Blue Orca boasted in October that its research showed that Seek’s job market share was a sell-off and was only worth $ 7.60.
The stock traded around Blue Orca’s quadruple target of $ 30.60 on Wednesday, after Seek improved its 2021 revenue and financial profit forecast after adjusting for its downward sell off of Zhaopin.
Three short choices, three profit upgrades. No one ever said short selling was easy.