We're short $QBTS. Report at . D-Wave is not true quantum computing, its core tech – quantum annealing – is a commercial dead end abandoned by rest of industry. 20 yrs of ops & financials are pathetic, only massive share dilution has kept it afloat 1/9kerr.co/qbts $QBTS strategy relies on so-called “hybrid solvers” for optimization problems – which sounds like a combination of quantum and classical but according to former insiders is “almost entirely classical” with quantum little more than a marketing gimmick 2/9

We're short $IONQ. Report at . Massive scaling challenges & reliance on photonic interconnects means the co is nowhere close to producing a commercially viable product. As reality sets in on the quantum computing bubble, $IONQ remains wildly inflated 1/7kerr.co/ionq 4Q results included an unexpected management change, dilutive capital raise, and looming overhauls to the tech roadmap and benchmarks – obv signs of problems at $IONQ and that’s before the CEO cashed out $37m in stock at only $18 bucks 2/7

We're short $RCAT. Report available at . RCAT stock is up 800% and $900M over nine months on excitement for the supposedly HUGE SRR contract. Red Cat says it's a sole-source contract worth hundreds of millions of $ over 5 years and $80M next year (1/9)kerr.co/rcat But the SRR contract is much smaller: $20-25M/year at most according to Army budget docs. Army officials also say that the replacement cycle will be every 2-3 years and product specs require open system compatibility with new vendors, which will be reconsidered each cycle (2/9)

We're short $OKLO. Report at . $OKLO’s claimed unit economics are nonsensical, its mgmt are academics with weak real world commercialization experience, its tech / engineering team dramatically trails peers and its projected timelines are laughable 1/7kerr.co/oklo News that an $OKLO board member may be appointed Energy Secretary have caused shares to rebound 25% after a disappointing 3Q biz update, but nothing has changed $OKLO’s fundamental lack of design readiness and commercially nonviable unproven reactors. 2/7

We're short $LUMN. Report at . Despite 400% stock rise in recent weeks, AI can't save this dying, overlevered legacy telecom. The newly announced deals won't reverse worsening sales and margin trends amid a staggering debt burden. Equity is worthless. 1/8kerr.co/lumn Building AI-driven “Custom Networks” for $MSFT and other large tech cos is just marketing spin for a massive construction project that only nets $LUMN ~$800m in cash over ~3 yrs and does little to solve its fundamental lack of growth and $19b in debt. 2/8

Today, we launch a war against bitcoin miners, an industry of snake oil salesmen that are incinerating both investor capital and the environment and should be banished from America much like the Chinese RTO frauds that we helped kick out a decade ago (1/10) We begin by issuing two letters to Texas state officials:

Letter to Navarro city commission:
Letter to Texas state senators:

We’re short $RIOT: report avail at (and long bitcoin as a hedge)
(2/10)kerr.co/riot-navarro
kerr.co/texas-senators
kerr.co/riot

GM. We're short $MSTR and long bitcoin. Report avail at . Crypto trades often get carried away and $MSTR is no exception. The BTC price implied in $MSTR shares is now over $177k, an unjustifiable 2.6x the spot price of BTC. (1/6)kerr.co/mstr No fundamental reason for this level of premium exists. $MSTR doesn’t provide unique access to bitcoin. Buying BTC in the equity markets is easy and cheap through an ever-growing number of low fee ETPs and ETFs like $IBIT and $FBTC. (2/6)

We're short $CVNA post the 30%+ spike last Friday, report avail at . Valuation was stretched before, now at 42x '24E EV/EBITDA, it’s plain ridiculous. CVNA is a severely levered, growth-challenged auto dealer trading like it’s an AI darling (1/9)kerr.co/cvna2 Last week the company may have guided to better 1Q24 EBITDA, but consensus revenue estimates actually declined post earnings. $CVNA can’t be a one-trick pony on profits forever, it needs to deliver on substantial growth in volumes (2/9)

We're short $ALT. Report available at . Altimmune's only asset is pemvidutide, a dual GLP-1/glucagon with no chance of commercial success. The drug has awful tolerability and underwhelming weight-loss activity. It's going to bomb in phase-3. (1/8)kerr.co/alt In ph2, pemvidutide led to 15.6% weight loss at 48 weeks. On an apples-to-apples basis, that's a bit less than semaglutide and much less than tirzepatide. Considering pemvidutide does nothing to control blood sugar, that's already enough for the drug to be a dud. (2/8)

We're short $JOBY. Report avail at . The Joby pipe dream is a combination of an aerospace science project & air taxi delusion. In its path to almost certain failure, it's going to incinerate billions of investor capital or just go bust. Probably both 1/9kerr.co/joby Joby promises 100-mile range, 10k battery cycle life, and low cost. Investors will find out that's IMPOSSIBLE. Accounting for reserve requirements, cutting edge Li batteries will enable 35 miles of range and a couple thousand charge cycles, at best. 2/9

We're short $TLRY. Report avail at . Tilray is a $2.4b mkt cap structurally unprofitable Canadian cannabis player diluting shareholders into oblivion (1/9)kerr.co/tlry Shares have spiked over the past two weeks on misplaced hope over marijuana rescheduling despite $TLRY having no plant-touching ops in the U.S. Rescheduling would not legalize the sale of weed for anything except FDA-approved drugs. (2/9)

We are short $CVNA. Report avail at kerr.co/cvna. Carvana is insolvent, its equity is worthless. Nothing more than a poorly run auto retailer, the company will never generate sustainable positive cash flow until its debt is equitized (1/9) $CVNA has never produced profitable growth. Even during the pandemic when demand soared, interest rates were low and used car prices were mooning, $CVNA couldn’t generate consistent profits – now none of those conditions exist (2/9)

We're short $UEC. Report at kerr.co/uec1. A classic junior mining promotion from our hometown, $UEC acquires uneconomic uranium assets to trick retail investors into thinking it’s a legit miner. But it’s just a long-running scam that issues shares, enriches insiders 1/ We go through each asset in our report & explain why these assets will, assuming uranium prices spike, still remain uneconomic, too small, low quality and/or unlikely to be developed. Altogether, $UEC’s assets are fundamentally worth a small fraction of the current market cap 2/

We are short $AI. Report avail at kerr.co/ai. A services business that has failed as a software company, C3.ai is a no-growth, cash-burning industry flop with poor economics, a tenuous competitive position and dismal value proposition (1/9) The company sells expensive, difficult to implement solutions that regularly lose out to a plethora of alternatives. C3 serves a limited application set and pursues narrow, niche TAMs. Operations are structurally unprofitable with losses ballooning as sales grow 2/9

We are short $ASTS. Report avail at kerr.co/asts. A classic 2021 SPAC, ASTS is a $2bn pre-revenue satellite company, hemorrhaging cash trying to bootstrap an absurdly grand vision that has no chance of getting off the ground (1/8) Skepticism from the space and satcom experts we interviewed surrounds nearly every aspect of AST’s plan: spacecraft design, quality of service, addressable market, and ability to execute against competition from SpaceX and Apple (2/8)

We’re short $PAYC. Report at kerr.co/payc. Much like our $HUBS call in December, $PAYC is an ok biz still trading at a nosebleed bubble valuation. The looming job recession, intensifying competition & TAM saturation imply -50% for shares. 1/8 Read @akramsrazor's short thesis at the-razors-edge.ghost.io/razors-edge-pr…. Our report elaborates on many of his arguments 2/8

We're short $LWLG. Report available at kerr.co/lwlg. Lightwave Logic is a photonic device company that's been stuck in "development stage" for 30 years, and will probably never come out. (1/8) Lightwave says its electro-optic polymers and optical modulators will enable 2-3x faster internet speeds, but it's been saying that since it went public in 2007. In the meantime, optical transmission speeds have increased >20x and $LWLG has generated zero revenue. (2/8)

We are short $DWAC. Report avail at kerr.co/dwac. We believe $DWAC will never secure regulatory approval to close its proposed merger with Trump Media & Tech Group. (1/9) The SEC is cracking down on SPACs and $DWAC is a poster child for some of the worst abuses the investment vehicle has spawned. (2/9)

We're short $ASTR. Report at kerr.co/astr. Facing a 91m share lockup expiry tmrw, $ASTR is 2021’s worst space SPAC: a $2b pre-rev launch co, announced at height of the bubble, bleeding cash trying to build hundreds of puny, unreliable rockets for a nonexistent mkt 1/7 Even among small launchers, all of whom face questions regarding mkt opportunity and LT viability, $ASTR is especially poorly positioned and falling further behind. While competitors will soon be launching 1,000kg+ payloads, Astra hopes to have half that in 2 years. (2/7)

We’re short $HUBS. Report at kerr.co/hubs. Trading at 20x fwd rev, $HUBS benefited from a one-time COVID boost that lifted shares 6x. But fierce competition & stale products will lead to low growth / margins, long before the biz grows into its sky-high valuation 1/7 HubSpot’s growth decelerated for years prior to Covid. Only during the pandemic, when SMBs scrambled to go digital, did growth turn around and HubSpot’s historically pedestrian multiple suddenly soar 2/7

We are short $CEI. Report avail at kerr.co/cei. This one has something for everyone: death-spiral financing, a fake CFO, delinquent filings, fired auditors 3 wks ago, insolvent energy assets & the saddest family of entrepreneurs in the cleantech vaporware space ☹️ 1/7 For yrs, $CEI has been locked into a dilution death trap with the terrifying Discover Growth Fund, whose Series C preferreds have caused the share count to increase by 10+ million-fold in the past 6 yrs. In the past 18 mos, a $CEI shareholder has already been diluted by 20x: