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ShadowFall

@ShadowFallCR

14 Jan

ShadowFall is short Network International $NETW
Burkhard Ley (former Wirecard CFO): “I read through the 101-page [Zatarra] report . . . page by page. After that I knew that not a single allegation was correct.”
For us, the NETW response is reminiscent of the Ley defence. 1/6

Like dear Burkhard’s response in 2016, we believe NETW’s response doesn’t do investors justice after promising a full response. Despite saying not a single allegation was correct, Burkhard couldn’t provide one example to back up this claim. 2/6

Now from NETW “The [SF] report contains a number of factual inaccuracies”. Yet despite taking critique of the company seriously, it doesn’t provide one example to back up its claim, & instead moves from prior suggesting a “full response” to updating its FAQs. 3/6

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ShadowFall

@ShadowFallCR

23 Dec 20

ShadowFall is short Network International ($NETW). Report available to download from: shadowfall.com/researchservic…
Some of the Wirecard connections to NETW’s intended acquisition, DPO, are already known. However, we have found numerous links…. 1/7

Yes, DPO bought Acona from Dietmar Knöchelmann, who was subsequently convicted for money laundering & fraud. However, we also find that DPO has been audited by a former co-director to Knöchelmann. 2/7

As for DPO’s initial company secretary & Director, these are the same individuals connected to Greymountain Management, which is currently involved in an ongoing US CFTC court case regarding binary option scams. 3/7

Read 7 tweets

ShadowFall

@ShadowFallCR

18 Nov 20

ShadowFall is short Blue Prism ($PRSM). shadowfall.com/researchservic…
We believe PRSM is being left behind by its peers in the highly competitive & commoditised RPA market. In our view, PRSM’s prospect of ever reaching meaningful profitability is low. 1/4

Meanwhile, PRSM’s key metrics appear to be worsening, such as revenue per average customer, the quality of its receivables, upsell rates, customer churn, while significant board churn and what we view as lack of appropriate independence we find also of concern. 2/4

We find consistent inconsistencies within the filings and company statements, whether it’s between the P&L & corresponding notes in the accounts, gaps in the main subsidiary filings or claims regarding its recent acquisition. 3/4

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ShadowFall

@ShadowFallCR

30 Sep 20

ShadowFall is short Boohoo (£BOO).
Below are several questions that we believe should be put to Boohoo’s management:

1. Of the £89.8m in EBITDA for 1H20, what percentage of this do you estimate was driven from unintentionally benefiting from the exploitation of Leicester factory workers due to their low pay and poor working conditions in the supply chain?

2. What percentage of the £367m in cost of goods in 1H20 was attributable to supply from Leicester? Going forward, what percentage of this would you envisage will continue to be attributable to supply from Leicester?

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ShadowFall

@ShadowFallCR

13 Jul 20

@LBC

ShadowFall Fund is short Boohoo (£BOO)
We believe that Iain Dale’s @LBC show from yesterday was enlightening. In particular an extended interview with @ABridgen: lbc.co.uk/radio/presente… 1/4

Mr Bridgen MP makes reference to two buildings, the Dunlop Building and the Imperial Typewriter Factory. In the former reference, we believe that he meant the Dunlop Business Centre (DBC). According to Land Registry details, the DBC is owned by JAK Property Jersey Limited. 2/4

JAK Property provides Boohoo’s headquarters, 49-51 Dale Street, Manchester, as its contact address with HM Land Registry. Further, based on filings with UK Companies House, we believe that JAK Property is associated with Jalaludin Abdulla Kamani (Perhaps the JAK reference?). 3/4

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ShadowFall

@ShadowFallCR

26 May 20

shadowfall.com/researchservic…
ShadowFall Fund is short BooHoo Plc (£BOO).
Since 2014, we believe that BOO has provided a misleading impression of its cumulative Free Cash Flow (FCF) by 67%. Most recently, in FY20, we believe BOO’s FCF was misrepresented by 65%. 1/5

Two weeks ago, BOO made a £198m cash call. We see a risk that BOO doesn’t use this for M&A, but instead combines it with its considerable £241m net cash, just to be paid to BOO’s Chairman’s son, through material dividends and a potential PrettyLittleThing (PLT) NCI buy-out. 2/5

We question if PLT’s profit is boosted by another BOO entity “wearing” some of its costs. We calculate that this effective “profit boost” could result in an additional £193m paid to PLT’s NCI. We suppose, if not used on M&A, BOO’s recent £198m cash call could support this. 3/5

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