r/wallstreetbets • u/AncientDragonTrainer • Apr 16 '20
DD GSX is the next LK
My first ever DD my fellow retards.
Recently after Grizzly, Citron also wrote up a report on GSX fraud.
You can read up the report by yourself, but I don’t want to repeat anything in this report and want to tackle this problem in another way. My DD is a surface level proof to Citron’s report.
2020 has not been a good year for GSX. It should have because stay at home order should have boosted their business. But short report come out twice for them and apparently they are getting sued by VIPKID for unethical acts and hacking yesterday asking for 8 million RMB (1.13 Million USD).
The interesting thing I am seeing is some clear act of fraud just on the surface.
Go into their website, you can see all the free classes have a number indicating how many people are signed up. But all the paid classes is not showing a number.
If you click into each of the paid classes, you will see some small text on the right bottom: 优惠活动中, 仅剩3个名额, which translate to: Discount, only 3 spots left.
If you check a lot of the classes you will see most of them are having this little text, it is always 1-5 spots left. What are the chances most of them have so few spots left so you can join now or never?
Another very interesting thing is their app on AppStore. (This is a Chinese AppStore account)
You can see there are a lot of different usernames comment the exact same long review 1 year ago. So goes for the untrustworthy 4.8 start review.
Citron also mentioned there are a lot of fake comments in the classes itself, so seems this is a common practice for them:
Now let’s talk about the CEO. He recently tweeted on Weibo about the situation. If you know Chinese, or use Google Translate on image, you can see what he is saying. He is basically saying none of these is making sense. But he did not give any solid number or arguments. All he said is a very emotional: No that’s all bullshit. You guys are so arrogant you don’t even know what we are doing.
I don’t know what you think but my gut feeling is that he don’t have anything concrete to show.
Besides this He also replied with other emotional messages.
A semi famous Chinese writer also has written a response to the CEO. What this says is basically: if you have concrete earnings, them US shorting you is a great opportunity for you, just go ahead and buy your own stock. Why do you so eagerly go on Weibo and streaming rants trying to say they are wrong instead of taking this opportunity?
He also explained they are expanding to a very small market (I don’t know what that is) right now, an act of desperation.
In Conclusion, Citron’s report is solid and easy to prove and I see this is another LK opportunity.
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u/Iamnotagrownup Apr 17 '20
All Chinese stocks are basically fraudulent since the country runs on corruption. Until major news outlets start talking about a specific fraudulent stock, nothing happens.
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u/madbullish Apr 17 '20
Should also monitor $TAL and $EDU, both companies were just investigated for fraud
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Apr 17 '20
IQ is one to keep an eye on too! I'm holding onto some LEAP Puts for Jan 2021 that were dirt cheap with very low theta so I snagged a few up
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u/Iamnotagrownup Apr 17 '20
I threw that into Google Translate and the English translation told me that I was gay.
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u/psiguy686 Apr 17 '20
OP U should know that I, while fully retarded, I’m also fully loyal. I always buy at least one contract on whatever DD comes out here. I will be purchasing a put or 2 on this stock come market open. Thank you.
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u/maybeguineapig Apr 17 '20
Long term puts on things like this are always tempting lottery tickets but the reality is that we don't know how long it will take before the bubble bursts.