Read on Twitter
Go Salmon:
The @FT remains the only media outlet seriously looking at $PDD's governance and business model. https://www.ft.com/content/09e313c8-a1f7-4b49-9c2f-a287683512d1
The @FT remains the only media outlet seriously looking at $PDD's governance and business model. https://www.ft.com/content/09e313c8-a1f7-4b49-9c2f-a287683512d1
I'd first like to draw attention to a few of the article's implications.
First, recall allegations in Blue Orca's $PDD short report where it alleged $PDD is using related parties to hide particular expenses. https://www.blueorcacapital.com/short-activism
Hint to @FT: Compare $PDD's PP&E with comparable internet platforms. You'll find $PDD is remarkably "efficient".
Second, recall Huang's sudden departure from $PDD, including relevant domestic legal structures. https://technode.com/2020/07/15/whats-really-behind-pinduoduo-leadership-switcheroo/
What @FT's article doesn't answer is the reasons behind Huang's departure.
Hint: Note current and former $PDD CEO's have slid off domestic legal structures.
Why? https://twitter.com/briefnorris/status/1291224729064529925
Hint: Note current and former $PDD CEO's have slid off domestic legal structures.
Why? https://twitter.com/briefnorris/status/1291224729064529925
My hunch is that it's ass-covering related to investigations into money laundering rings active on $PDD. https://www.ft.com/content/e669a621-b40b-45b0-abc0-9648d10cdd1b
Third, the article shines light on $PDD's corporate governance. It's just good buddies Huang and Chen in $PDD's C-Suite. As I quipped a few months back, this should disconcert you.
https://twitter.com/briefnorris/status/1281222873361899524
https://twitter.com/briefnorris/status/1281222873361899524
I'm not going to claim that I knew every detail in the @FT's article. However, as my $PDD-related tweets evidence, I've accepted the findings of Blue Orca's short report as broadly accurate.
https://twitter.com/search?q=%24PDD%20(from%3Abriefnorris)&src=typed_query
https://twitter.com/search?q=%24PDD%20(from%3Abriefnorris)&src=typed_query
I'm happy to use this information advantage to "arm" the @FT (or any media outlet that seriously wants to look at $PDD) with a few hand grenades.
Here's a sample:
Here's a sample:
1. Have a hard look at $PDD's blowout Q3. $PDD's Q2 to Q3 turnaround is either a miracle or a neat piece of financial engineering. https://twitter.com/briefnorris/status/1335010937724575744
2. Hire an accountant to explain in what world 百亿补贴 subsidies (direct price discounts) can be classed as "sales and marketing expenses". https://twitter.com/briefnorris/status/1318164123788533761
3. Speaking of all things accounting, check how many $100B companies don't have a CFO.
4. Have a look at how "cash and cash equivalents" and "short-term investments" have changed over time, particularly last year.
5. Interview merchants and understand whether any express or implied guarantees are made on marketing dollars spent on the platform.
6. Intimately understand $PDD's cash cycle - the good, the bad and the ugly.
There you go, @FT. You're sufficiently armed with enough hand grenades.
Keep up the good work, Salmon.
Keep up the good work, Salmon.
