Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

S&P/​ASX Indices: Quiddity Leaderboard for March 2022 Rebalance

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Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits

IFast 3Q2020 Results: Strong Earnings Momentum to Continue with New Business Initiatives

GSX TechEdu: Grizzly’s Allegations Look Difficult to Refute

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Lufax IPO Valuation: The Risk-Reward Profile Does Not Justify the Premium

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Forensic Accounting

<a href="https://www.smartkarma.com/entities/seek-ltd" target="_blank" data-smartkarma-citation="entities:676:1" rel="noopener">Seek Ltd (SEK AU)</a>  operates an international portfolio of employment and education businesses across Australia, New Zealand, China, Hong Kong, South-East Asia, Brazil and Mexico. The company operates an online marketplace that offers employment classifieds in Australia and internationally. In addition, Seek also offers advice in relation to education courses.The company has been accused by Blue Orca Capital (<a href="https://static1.squarespace.com/static/5a81b554be42d6b09e19fc09/t/5f99f9ba94399006bdb5f02c/1603926464878/Blue+Orca+Short+SEEK+Ltd+%28ASX+SEK%29.pdf" target="_blank" rel="noopener">https://static1.squarespace.com/static/5a81b554be42d6b09e19fc09/t/5f99f9ba94399006bdb5f02c/1603926464878/Blue+Orca+Short+SEEK+Ltd+%28ASX+SEK%29.pdf</a>) and some of the accusations laid out by Blue Orca include fake job postings on the company’s website, misrepresentation of its market share and inflated profits.<div class="content-highlight">We think Zhaopin’s platform is rotten, which is devastating for Seek’s prospects. Seek has historically paid a dividend, giving the false impression that its business produces healthy profits and cash flows. But these payments have been largely funded by debt. A serial acquirer, Seek has repeatedly tapped the capital markets to fund acquisitions, raising its Net Debt-to-reported EBITDA to 3.2x. By our calculation, Seek’s true leverage is much higher</div>In this insight, we attempt to examine some of these allegations and have assessed the merits of those claims using the company’s financials.

Seek Ltd (SEK AU)  operates an international portfolio of employment and education businesses across Australia, New Zealand, China, Hong Kong, South-East Asia, Brazil and Mexico. The company operates an online marketplace that offers employment classifieds in Australia and internationally. In addition, Seek also offers advice in relation to education courses.The company has been accused by Blue Orca Capital (https://static1.squarespace.com/static/5a81b554be42d6b09e19fc09/t/5f99f9ba94399006bdb5f02c/1603926464878/Blue+Orca+Short+SEEK+Ltd+%28ASX+SEK%29.pdf) and some of the accusations laid out by Blue Orca include fake job postings on the company’s website, misrepresentation of its market share and inflated profits.We think Zhaopin’s platform is rotten, which is devastating for Seek’s prospects. Seek has historically paid a dividend, giving the false impression that its business produces healthy profits and cash flows. But these payments have been largely funded by debt. A serial acquirer, Seek has repeatedly tapped the capital markets to fund acquisitions, raising its Net Debt-to-reported EBITDA to 3.2x. By our calculation, Seek’s true leverage is much higherIn this insight, we attempt to examine some of these allegations and have assessed the merits of those claims using the company’s financials.

Seek Ltd: Some of the Outrageous Claims by Blue Orca Look Irrefutable