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BLEMISHGATE UPDATE:

Within 24 hours of our report, TTI has removed all Factory Blemished Ridgid items from the DTFO website.

Ridgid is the Home Depot private label tool brand.

TTI is never going to say "we did it," they're just going to stop doing it. As we predicted. (2/)
The number of Ridgid products available on the site has dropped overnight from 287 to 81...

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A DIFFERENT SHORT THESIS ON TECHTRONIC: SYSTEMATIC FRAUD AGAINST ITS 50% CUSTOMER
We’re short TTI again, but this time, it has nothing to do w/ accounting. We believe TTI is earning hundreds of millions in profits by defrauding Home Depot. (2/)
We believe TTI’s fraud is “hiding in plain sight,” making it easy for Home Depot to stop it once exposed.
TTI is falsely labeling Depot-exclusive product as “Factory Blemished” to make it *appear* eligible for sale through a network of TTI-owned outlet stores.

(1/x) We’re short $OLED, which we find is using aggressive accounting to obscure revenue declines since its key patent expired in 2020.

(We also call on $OLED to explain why its top Seeking Alpha cheerleader has so much in common with its longtime CFO/current Board Member?) (2/x) $OLED uses complex, long-term contract accounting to come up with its revenues. We believe the company has abused the flexibility of this accounting model to pull tomorrow’s revenues into today. This is how you turn 2020’s patent cliff into 2023’s revenue cliff.

Our new short: 669 HK (Techtronic Industries). We’re excited to announce that we’ve found the only $1bn+ company *in the entire world* whose gross margins have expanded this consistently for an entire decade.
That’s the “smoke.” The “fire” is massively, jehoshaphatresearch.com… twitter.com/i/web/status/1… (2/x) We believe TTI’s income has been inflated for many years, but the inflation has gotten more and more aggressive as the web of deceit has gotten harder to maintain.

(1/8) We are short $PGNY, a third-party administrator that we find has pulled off some amazing accounting tricks. We think gross margins are as much as 900bps lower than what the company reports. New credit risk also present. Full report at jehoshaphatresearch.com. (2/8) Three quick steps to inflating profits:
A.Stop using “historical” gross margins when booking today’s expenses.
B.Start using “expected” margins.
C.Expect ridiculously high margins!
It’s actually that simple. And you can see the impact in $PGNY numbers…

(1/7) We are short ARRY, a levered company we see as inflating revs, margins, even cash flows. Former employees tell amazing stories of accounting games and bold, “impossible” promises made by management to investors.
Full report (no paywall) at jehoshaphatresearch.com (2/7) Per one former employee: ARRY would book revs. without even having manufactured the product, let alone having shipped it. Another: ARRY’s claims of a 20% gross margin are “crazy” & real gross margin is approx. 10-11%. (Street is modeling ~20% margin for ’23 & beyond.)

(1/6) Our new short: $BWXT.

$4bn defense co. Only 2% short interest. Report at jehoshaphatresearch.com.
Project accounting anomalies, surging unbilled revs, misleading capex #s, and more debt than understood. Resembles a related company that imploded under similar issues. (2/6) $BWXT has put together a 7-year streak of positive project accounting “revisions”, adding nearly $300m to EBIT. The streak is insane when compared to peers, or to common sense. We think nuclear project losses are buried by creative accounting.

1/5: We’re short $MXL, a $4bn rollup of melting ice cubes. Organic growth is 0%. About to lap a big acquisition, so organic growth is the only kind of growth left. The Street models double-digit growth; they’re unaware this would be a massive acceleration. Jehoshaphatresearch.com 2/5: $MXL enjoyed a major tailwind from its 2020 acquisition of Intel’s Home Gateway asset, which was a direct beneficiary of the work-from-home explosion of 2020. That growth rate was impossible to maintain, and worse, IHG was a business in long-term decline to begin with.

(1/7) We're updating our $AHCO short with new information that conclusively proves negative organic growth for all of 2021 so far.

The opportunity to short AHCO at this level again is incredible: neg org growth confirmed, short interest low, stock back to pre-report levels. (2/7) Management insisted on its earnings call last week that, yes, organic growth is in fact 10%. Virtually the entire sell-side took this at face value. Of course, all this sent the stock up dramatically on heavy volume.

The next day - 5:30pm on a Friday - the 10-Q came out.

(1/x) Below are our thoughts on $AHCO Q221 earnings. The one caveat is that the 10-Q is not out yet, and that is crucial to our analysis. We expect this to be filed next week.

Most apparently, AHCO is doubling down on its misleading "organic growth" in its reporting. (2/x) Management has planted a flag, and it reads: We aren’t going to disclose true organic growth, and if you don’t like it, this is not the stock for you.

Some analysts asked on the call about what this “same-store growth” metric. They were rebuffed at every turn.