The research and reports presented on this website express the opinion of the applicable Muddy Waters Entity only. GSX Techedu Inc. (NYSE: GSX) (“GSX Techedu” or the “Company”) is a technology-driven education company and a leading online K-12 large-class after-school tutoring service provider in China. America Movil S.A.B. With respect to their respective research reports, Muddy Waters Research and Muddy Waters Capital makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. The cloud business Fastly Inc. (FSLY) has increased in price over the week as the COVID-19 pandemic continues. Today, the average trading volume of GSX was 4.17M shares. We conclude that GSX is a massive loss-making business. A $3 Stock to Change Your Life: Find Out How. GSX currently public float of 127.14M and currently shorts hold a 25.23% ratio of that float. Sorry, your blog cannot share posts by email. Since the beginning of the year, Chinese solar energy solutions provider JinkoSolar Holding Co. Ltd. (JKS) has risen almost 172 percent. PDS Biotechnology Corporation (PDSB) revealed pretty balanced Earnings results as it emphasizes cost-cutting measures, Glencore CEO Says It is in Talks with Carmakers and Battery Makers about Nickel, JinkoSolar (JKS) Stock To Rise Benefiting From Global Solar Efforts, Uber, Inc. China stock GSX Techedu sold off Monday after short seller Muddy Waters claimed almost all of the online-only education firm's purported students are in fact bots.. We are short GSX because we conclude that it is a near-total fraud. During the last 5 trading sessions, GSX fell by -8.40%, which changed the moving average for the period of 200-days by +72.05% in comparison to the 20-day moving average, which settled at $69.14. In the report, Citron focused on the issue of business costs of GSX, claiming that the company’s efficient operating efficiency was due to some transactions with undisclosed related parties. If you have obtained research published by Muddy Waters Research or Muddy Waters Capital in any manner other than by download from that link, you may not read such research without going to that link and agreeing to the Terms of Use. Is There a Dimmer Outlook Ahead for The PNC Financial Services Group Inc. (PNC)? In many of our previous posts, we emphasized how critical not just get emotionally attached to the fraud discovery itself but also focus on the broken business model. You agree that use of the research on this website is at your own risk. Up to 70% of revenues are fabricated and the Chinese media agrees. The reports on this website have been prepared by either Muddy Waters, LLC (“Muddy Waters Research”) or Muddy Waters Capital LLC (“Muddy Waters Capital”). Opinions of the stock are interesting as 3 analysts out of 15 who provided ratings for GSX Techedu Inc. declared the stock was a “buy,” while 0 rated the stock as “overweight,” 8 rated it as “hold,” and 4 as “sell.”. GSX also disclosed in the report that the Executive Department of the US Securities and Exchange Commission (SEC) has required it to provide financial and operational data since January 1, 2017. The agency noted that a source revealed that the company paid a total of less than CNY 10 million in VAT in 2017-2019. In relation to the United Kingdom, the research and materials on this website are being issued only to, and are directed only at, persons who are Permitted Recipients and, without prejudice to any other restrictions or warnings set out in these Terms of Use, persons who are not Permitted Recipients must not act or rely on the information contained in any of the research or materials on this website. In no event shall Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons be liable for any claims, losses, costs or damages of any kind, including direct, indirect, punitive, exemplary, incidental, special or, consequential damages, arising out of or in any way connected with any information on this website. 1. We refer to Muddy Waters Research and Muddy Waters Capital collectively as “Muddy Waters” and individually these entities are referred to as a “Muddy Waters Entity”. Sponsored ADR Class A is a company in the U.S. stock market and it is a holding in 50 U.S.-traded ETFs. In October and November, the shares of inverter manufacturer SolarEdge Technologies Inc. (SEDG) fell. A high-level overview of GSX Techedu Inc. (GSX) stock. Neither Muddy Waters Research nor any Muddy Waters Related Person (including Muddy Waters Capital) are offering, selling or buying any security to or from any person through this website or reports on this website. Click here now. Muddy Waters Research is affiliated with Muddy Waters Capital. The Chinese media company, Phoenix New... Spotify Technology S. A. Hits 7% Following Win over Labor Laws, UBER’s Market Valuation Surpasses an All-time High, Why Socket Mobile Inc [SCKT] Could Break $4 Resistance and Test New Highs. The Indianapolis laboratory sought an emergency use authorization from the U.S. Food & Drug Administration for... MoneyGram International Inc. (MGI) consolidated a bit on Thursday as it share price dropped -3.51 percent to $7.02. The average price from analysts is $459.95, which is $10.46 above the current price. The company last Thursday, announced that its... Phoenix reports its revenue in line with the prior announced guidance as the stock soars on special dividend announcement. You knowingly and independently agree to submit to the personal and exclusive jurisdiction of the state and federal courts located in San Francisco, California and waive your right to any other jurisdiction or applicable law, given that Muddy Waters Research and its affiliates are based in San Francisco, California. GSX Techedu, Inc. The reports are the property of the applicable Muddy Waters Entity that published that report. We won’t repeat anything that has been fully discussed in all the short selling reports, instead we want to draw your attention to the bigger picture. Press Release reported on 11/20/20 that GSX Announces Third Quarter 2020 Unaudited Financial Results, GSX Techedu Inc. (NYSE:GSX) scored a price-to-earnings ratio above its average ratio, recording 303.90 x from its present earnings ratio. Over the last 50 days, in opposition, the stock is trading -40.19% lower at present. Amazingly, Chairman Chen has found a way to make GSX shares even more dangerous for long holders – he has pledged at least $318 million of stock. The failure of Muddy Waters Research or Muddy Waters Capital to exercise or enforce any right or provision of these Terms of Use shall not constitute a waiver of this right or provision. You (or any person you are acting as agent for) agree to hold harmless Muddy Waters Research, Muddy Waters Capital and its affiliates and related parties, including, but not limited to any principals, officers, directors, employees, members, clients, investors, consultants and agents (collectively, the “Muddy Waters Related Persons”) for any direct or indirect losses (including trading losses) attributable to any information on this website or in a research report. See the schedule of reporting dates below. GSX stocks went down by -8.40% for the week, with a monthly drop of -8.77% and a quarterly performance of -23.96%, while its annual performance rate touched 239.88%. Reports are based on generally available information, field research, inferences and deductions through the applicable Muddy Waters Entity’s due diligence and analytical process. Total debt to assets is 7.49, with long-term debt to equity ratio resting at 12.47. This follows the company’s announcement that its SocketScan... Wall Street Pummels GSX Techedu Inc. (GSX) After Recent Earnings Report. The receivables turnover for the company is 41.98 and the total asset turnover is 1.14. de C.V. (AMX) Reveals an Earnings Mystery, Roku Inc. (ROKU) and the Battle of Fundamentals vs. Technicals, Nuance Communications (NUAN) Stock Rose Over 26% In A Week After Q4 Results, Fastly (FSLY) Stock Likely To Be Benefited From Increasing Restrictive Measures, U.S. Economy Growing Dynamically, Europe Still To Struggle More. GSX also disclosed in the report that the Executive Department of the US Securities and Exchange Commission (SEC) has required it to provide financial and operational data since January 1, 2017. 1)For the accusation that "the users are at least 80% the robot", Shen Nan, GSX's CFO, explained that it has nothing to do with the robot. Muddy Waters Research, Muddy Waters Capital and/or the Muddy Waters Related Persons intend to continue transacting in the securities of Covered Issuers for an indefinite period after an initial report on a Covered Person, and such person may be long, short, or neutral at any time hereafter regardless of their initial position and views as stated in the research report published by Muddy Waters Research or Muddy Waters Capital. Finally, the long-term debt to capital ratio is 10.72. GSX has around 3.5M shares in the U.S. ETF market. This limitation of liability applies regardless of any negligence or gross negligence of Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons. On June 6, 2019, GSX began trading on the NYSE under the symbol ^GSX at $10.5 per share. By downloading from, or viewing material on this website, you agree to the following Terms of Use. To the best of the applicable Muddy Waters Entity’s ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources that the applicable Muddy Waters Entity believe to be accurate and reliable, and who are not insiders or connected persons of the Covered Issuers or who may otherwise owe a fiduciary duty, duty of confidentiality or any other duty to the Covered Issuer (directly or indirectly). GSX’s financial results have been repeatedly questioned partly because the overall online education industry has slowed in recent years even as GSX reported strong growth. The recent victory of Proposition 22... Socket Mobile Inc is in a breakout and rallied by over 20% in yesterday’s session. The stock is... Uber stock traded at a 52-week high on Friday just after the company reported its third quarter results. You agree that regardless of any statute or law to the contrary, any claim or cause of action arising out of or related to this website or the material on this website must be filed within one (1) year after the occurrence of the alleged harm that gave rise to such claim or cause of action, or such claim or cause of action be forever barred. Save my name, email, and website in this browser for the next time I comment. In response, GSX.com issued a statement, claiming Citron’s short report Part 3 is “full of false allegations.” On the so-called “related party transactions”, GSX replied that all related party … Regardless of how one cuts it though, GSX is an almost completely empty box. Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.07. (SPOT) is continuing its acquisition approach, this time with Megaphone, an advertisement and publishing site for podcasts, which will be... Tyson Foods Inc. (NYSE: TSN), one of the largest meat suppliers, plans to open new poultry meat production facilities with a total annual capacity... McDonald's Corporation (MCD) is creating its own plant-based burger that will only be served at its own restaurants. Our conclusions are based on GSX’s own user and attendance data files (i.e., this is not from “scraping” data). GSX said that the short report is confused and full of ignorance about the company's business. You have entered an incorrect email address! Without users, there is no revenue. 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