Nuvei Corp T.NVEI

My Opinon on Short Sellers

[AlwaysLong683]

I think it is benefiicial to have short sellers in the marketplace and allow them to write and make short reports public if they feel a company is overvalued or engaging in questionable practices, even if they are already short the stock, provided they present valid reasons for their thesis. Otherwise, all you'd hear are bulls who have been and will continue doing the same thing with regard to their long thesis re. that same stock.

For example, for those who watch such shows as BNN's Market Call to find out what the "Top Picks" are of the various guests can be pretty sure in the vast majority of instances that the guest already has a long position in that same stock for himself and/or his clients and thus wants the share price to rise, so if he can get viewers to bid the price up subsequent to his recommendation, he/his clients will benefit.

Sometimes short sellers can help investors reduce any (further) losses they may experience in being long a stock.

Remember Valeant Pharmaceutials?
At its peak, I think it had the highest market cap of any company in Canada. However, short seller Fahmi Quadir was having none of it and was proven right.

In fact, Spruce Point Capital itself has made some good calls on stocks in the past.

However, just like professional investment managers who make a bullish call on a stock and get it wrong, taking investors money who purchased the shares based on that recommendation with it, short sellers can also get calls wrong. In my view, as long as neither side is making false statements, they can both present their respective cases / arguments and said investors can then make up their mind whether to sell, buy more, or stand pat.

This call by Spruce Capital could turn out to have legs or become moot - investors will have to make up their own minds about what they wish to do going forward, but if you are long NVEI and believe that what Spruce has presented has llitle to no merit, you can of course keep your shares or perhaps even buy more if you think it's considerably undervalued at the moment. However, like I stated above, short sellers can provide a good check and balance on the longs, and may in fact prove to be right about their call.

Good luck to all.

[KarlMarx1]

I agree with you 100%.  As one who lost a good chunk of change on Valeant, and a few others, I have to ask how all of the "analysts" can get it so wrong on these stocks.  It seems that some of the allegations in this instance, if true, should have been relatively easy to see (eg. organic growth, and past fraudulent practices by executives), IF ONE IS LOOKING.   After

[1condor]

KarlMarx1...this is still a good company with growth prosects...what we have here today is "one" predator making a short play on the stock. All the analysts arent wrong on this company.

[TheeRook]

Many of the analyst's companies were in on the financings.  So they are bias in being positive. NUVEI ANNOUNCES CLOSING OF US $ 424,833,000 INITIAL PUBLIC OFFERING IN THE UNITED STATES Goldman Sachs & Co. LLC, Credit Suisse, J.P. Morgan, BMO Capital Markets and RBC Capital Markets acted as bookrunners for the offering and Raymond James Ltd., Canaccord Genuity Corp., Cowen and Company