"It takes a lot of work in order to do this with an acceptable level of danger," says Gabriel Grego of his investment research process. Gabriel, who runs Quintessential Capital Management, looks for tangible evidence of corporate misconduct, and he shorts companies whose valuations seem high given what he sees on the ground.
He made waves earlier this year with his idea on Folli Follie (OTC:FLLIY). Now he and Nate Anderson of Hindenburg Research are presenting a new idea on Aphria (APHA). They are raising concerns about the company's acquisitions of target companies that have apparent relationships with insiders. Some of these assets, according to their on-the-ground work, have little in common with the images conjured up in company press releases.
The idea itself is interesting, and I encourage everyone to check it out. This podcast dives into the process of gathering this type of information and what it's like to travel to remote parts of the globe to validate a hunch that a company's story might have serious holes.
This podcast is part of our coverage of the Kase Learning Shorting Conference. Check out our preview podcast with Whitney Tilson here.
What do you think? Let us know below.
Editor's note: Please find a transcript of this call here. This is not a perfect transcript, but should be a helpful guide.
This article was written by
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Gabriel Grego and Hindenburg Research are short APHA.