Another View of Short ReportIt is a typical report to create fear, uncertainty and doubt. Some parts made us laugh. An early point says insiders ONLY own 26%. That is $5 billion in stock. We wish all companies had $5B insider ownership. Calling Descartes a 'troubled software company' was really funny: the stock is up 100-fold since 2004. Essentially it attacked an expensive stock in a weak market and has already achieved the desired results. Our bet is that Sprucepoint has already partially covered the position. LSPD sold $716M in stock to US institutions in August at $93 and we would side with those buyers over an inflammatory report. While the SHOP report was from a different short seller, Sprucepoint has attacked other Canadian companies with mixed results. DOL was attacked at $36 a few years ago and is now $55, for example.
So said 5iResearch. GLTA