Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Equity Bottom-Up

ZoomInfo Technologies  / Equity Bottom-Up

<ul>
<li>This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  </li>
<li>They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.</li>
<li>These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings.</li>
</ul>


This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  
They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.
These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings.


Earnings Quality Short Candidates: ZoomInfo, Gogo, Elanco Animal Hlth, Sonos, Energizer

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

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<p><strong><a href="https://www.smartkarma.com/entities/27346" target="_blank" data-smartkarma-citation="entities:27346:1">Sonos Inc (SONO US)</a></strong> <strong>is an IPO which is expected to get completed in the US in August/early September.</strong> The Sonos IPO is expected be be priced between US$17 to US$19 per share, suggesting market cap up to US$1.9 billion. In 2012, the company's implied valuation was US$682 million in a Series D private funding. We are interested in analyzing Sonos not just because of its merits as an investment opportunity but also because it could help us to better understand the competitive dynamics of the…</p>
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Sonos Inc (SONO US) is an IPO which is expected to get completed in the US in August/early September. The Sonos IPO is expected be be priced between US$17 to US$19 per share, suggesting market cap up to US$1.9 billion. In 2012, the company's implied valuation was US$682 million in a Series D private funding. We are interested in analyzing Sonos not just because of its merits as an investment opportunity but also because it could help us to better understand the competitive dynamics of the…


Sonos IPO Preview (Part 1): To Fill Every Home with Music

United States

La-Z-Boy Incorporated manufactures residential and office upholstered furniture. The Company's product lines include motion, stationary and modular seating, desks, cabinets, conference tables, dining room and bedroom furniture, and book cases.  La-Z-Boy markets its products through department and furniture stores, mass merchandisers, and La-Z-Boy showcase galleries.

Helen of Troy Limited designs, produces, and markets brand-name hair dryers, curling irons, hair setters, women's shavers, brushes, combs, hair accessories, mirrors, and comfort products. The Company's products are sold through mass merchandisers, drug chains, warehouse clubs, and grocery stores.

Leggett & Platt, Incorporated manufactures a wide range of engineered products. The Company's products include components for bedding, furniture, and other residential furnishings, as well as office and institutional furnishings components, retail store fixtures, and displays, specialty wire products, and automotive seating suspension and lumbar systems.

Beazer Homes USA, Inc. designs, builds, and sells single family homes in the Southeast, Southwest, and South Central regions of the United States.  The Company's homes are designed to appeal to entry-level and first move-up home buyers.

Hovnanian Enterprises, Inc. designs, constructs, and markets single-family homes, townhomes, and condominiums in planned residential communities. The Company operates in the states of New Jersey, North Carolina, Pennsylvania, Virginia, Maryland, New York, California, Texas, Tennessee, Alabama, and Mississippi, and in Poland. Hovnanian also provides mortgages to its homebuyers.

LGI Homes, Inc. designs and constructs homes . The Company builds homes located in Texas, Arizona, Florida and Georgia.

Newell Rubbermaid Inc. manufactures and markets branded consumer products which are sold through a variety of retail and wholesale distribution channels.  The Company's products include housewares, juvenile products, home furnishings, office products, tools and hardware, and hair accessories.

JS Global Lifestyle Company Limited provides household appliances. The Company offers pressure and induction cookers, air fryers, countertop grills, upright and robotic  vacuums, water purifier, ventilator, thermos, and other related products. JS Global Lifestyle serves customers worldwide.

The Lovesac Company retails home furnishing products. The Company offers alternative furniture store, sectionals, bean bags, bean bag chairs, as well as other accessories such as blankets, footsacs, and throw pillows. Lovesac serves customers in the State of Connecticut.

iRobot Corporation manufactures robots that vacuum and wash floors and perform battlefield reconnaissance and bomb disposal. The Company markets its products to consumers through retailers, the United States military, and other government agencies worldwide.

Fujitsu General Ltd. manufactures air-conditioning units, refrigerators, and information-communication equipment. The products include air conditioners, and purifiers. The Company also manufactures computer software and electronic devices.

Suofeiya Home Collection Company Ltd develops, produces and sells custom wardrobes and matching custom furniture.  The Company's main products includes closets, sliding doors, wardrobes, walk-in closets, custom bookcases, computer desks, beds, beside cabinets, dressing tables, dressing stools, drawer cabinets, TV cabinets, shoe and accessories cabinets etc.

Bajaj Electricals Limited manufactures electric fans and general lighting items, such as lamps, special lamps, fluorescent tubes, and lighting fixtures.  The Company also manufactures consumer durables like small electrical appliances.

TTK Prestige Limited manufactures a range of domestic appliances.  The Group's products include pressure cookers and non-stick cookware, stainless steel and glass vacuum flasks, and gas stoves.

Sichuan Jiuzhou Electric Co., Ltd. manufactures and markets electronic audio equipment for commercial and consumer uses.

Edifier Technology Co.,Ltd. develops computer software operating systems, manufactures and sales active speakers and related accessories.  The Company's products include multimedia speakers, head phones and automobile stereo systems.

Guangdong Xinbao Electrical Appliances Holdings Co. Ltd. manufactures appliances. The Company designs, manufactures, and sells small household appliances including electric kettles, coffee machines, bread makers, mixers, toasters, and blenders.

Guangdong Xnbo Elctl Applns Hldgs (002705 CH)

TCL Multimedia Technology Holdings Limited, through its subsidiaries, manufactures television sets, trades television related components, and manufactures audio visual products.  The Company also manufactures personal computers and peripheral products. In addition, TCL Intenational operates information technology and other business.

JANUS (Dongguan) Precision Components Co.,Ltd. designs, manufactures, and sells consumer electronics precision molds and precision structural parts.  The Company's products are precision molds, mobile phones cases and other consumer electronics cases.

NavInfo Co., Ltd. develops, manufactures and sells electronic map product.  The Company's products include car electronic navigation product, consumer electronic navigation product, and electronic map service.

Sonos, Inc. designs, develops, and produces audio products. The Company offers charging cradles, music players, alternating current adapters, controllers, wireless speakers, and loudspeakers. Sonos serves customers worldwide.

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Sonos Inc (SONO US)

Earnings Quality Short Candidates: ZoomInfo, Gogo, Elanco Animal Hlth, Sonos, Energizer

Earnings Quality shorts lead to idiosyncratic alpha. Today, we show our model rankings and highlight ZoomInfo, Gogo, Elanco Animal Hlth, Sonos,...

Eric Fernandez, CFA

Sonos IPO Preview (Part 1): To Fill Every Home with Music

Sonos Inc (SONO US) is an IPO which is expected to get completed in the US in August/early September. The Sonos IPO is expected be be priced...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)