How To Find A Short | Short Selling 101 | Zer0es TV

TL;DR

This video provides insights from Edwin Dorsey, the author of the Bear Cave newsletter, on how to uncover potential fraudulent companies through unique research methods and tools.

Transcript

edwin dorsey is the author of the bear cave newsletter which is a weekly report that keeps investors informed of the latest events in the short selling world edwin researches everything from the newest activist short campaigns to releasing his own research on potentially fraudulent companies himself his most recent work revolves around the sketchy ... Read More

Key Insights

• 😀 SEC comment letters can provide valuable insights into companies facing heightened scrutiny and potential issues.
• 📪 Management turnover, especially a high number of resignations or CFO changes, can be a red flag for potential problems within a company.
• 🪈 Investigating consumer complaints and filing public records requests can help uncover fraudulent practices and legal issues.
• 💁 Utilizing tools like SEC Full Text Search and WHOIS/Reverse WHOIS can offer comprehensive information on individuals and website ownership.
• 💁 State-level government public record requests can often provide quicker access to relevant information compared to federal requests.
• 👨‍🔬 Twitter and other investor research platforms can serve as valuable resources for idea generation.
• 🖤 Obscure and unknown auditors may indicate a lack of credibility in a company's financial reporting.

Questions & Answers

Q: What are some unconventional research methods Edwin Dorsey uses to find potential short ideas?

Dorsey analyzes SEC comment letters, screens for auditors, talks to people, and searches for lawsuits against companies.

Q: How does Edwin Dorsey investigate management turnover to identify potential red flags in companies?

Dorsey looks for companies with numerous resignations or multiple CFO changes, indicating potential issues within the organization.

Q: How did Edwin Dorsey expose fraudulent practices at Care.com?

Dorsey discovered multiple lawsuits against the company, tested the site's safety protocols personally, and filed public records requests to uncover consumer complaints.

Q: What tools does Edwin Dorsey recommend for conducting thorough research?

Dorsey suggests using the SEC Full Text Search tool to analyze past filings mentioning specific individuals and utilizing tools like WHOIS and Reverse WHOIS for website ownership information.

Summary & Key Takeaways

• Edwin Dorsey, author of the Bear Cave newsletter, shares his unorthodox research process for finding potential short ideas, including analyzing SEC comment letters and tracking management turnover.

• He also emphasizes the importance of talking to people and researching consumer complaints to uncover red flags in companies.

• Dorsey provides a case study of his investigation into Care.com, showcasing how he utilized public records requests and SEC filings to expose fraudulent practices.