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@Optionspuppy：$C3.ai, Inc.(AI)$ 🏔🗻🏔🛕🌠🛣💒 Ahoy mateys! The ship of C3.ai is facing rough waters as the scallywags over at Kerrisdale Capital have accused them of accounting shenanigans. The stock has been taking a hit for two days straight after the letter from Kerrisdale Capital alleged that C3.ai has been overstating its revenue and margins. The shares fell by 26% to $24.95 on Tuesday, and the decline continued on Wednesday, with the stock down another 12% to $21.95. But let's not forget, the stock remains 95% higher this year! The company, however, has denied any wrongdoing and has claimed that Kerrisdale Capital is misconstruing its financial filings. This isn't the first time the lads and lasses over at Kerrisdale Capital have made accusations against C3.ai. In March, they published a report that argued that the stock's success was due to its management's choice of a stock ticker, "AI," and the current popularity of artificial intelligence software. But, it seems that report didn't slow the progress of C3.ai's stock price. This time, though, Kerrisdale Capital's accusations had a more dramatic effect. They sent a letter to the auditors of C3.ai, alleging that the company was using "highly aggressive accounting" to inflate its financial results. The goal, they claimed, was to meet the sell-side analysts' estimates for revenue and profit metrics and to conceal significant deterioration in its underlying operations. Kerrisdale Capital also pointed specifically to C3.ai's unbilled accounts receivable and days sales outstanding, alleging that the company was using fictional revenue to meet consensus analyst estimates. They claimed that this was to cover up the fact that their products were not gaining traction with customers, and their business was failing. C3.ai, on the other hand, pushed back against these allegations, claiming that Kerrisdale Capital was attempting to short the stock, publish an inflammatory letter to move the stock price downward, and then cover the short and pocket the profits. They said that the allegations showed a fundamental misunderstanding of U.S. GAAP accounting practices and principles. This battle between the two companies seems to be far from over. As a wise old pirate once said, "the sea is never calm, always restless and turbulent," and it seems that this is true for the stock market too. We'll have to wait and see who emerges victorious from this fight Overall I avoid small caps or pennies that usually have accounting That is questioned and targetedby shortist . 🐯 🐯🐯🐯🐯🐯 Dear tiger readers Please help to share post also clicking the repost button and follow me as I published my post on my ideas and trading experiences and sometimes including my current dividend positions and winning sell call and put trades . 🦁🦁🦁🦁🦁Do follow me share my posts regularly So more people can learn about my trading methods and winning trades on selling covered calls and puts options I share my options trade below usually I sell at a higher price then buy back at a lower price for a profit I also try to reward the first 100 commenters at least 1 coins each who also help me repost and like the article 🌈🌈🌈🌈🌈🌈🌈🌈 As always do your on due diligence and tradings have risks Do feature me @MillionaireTiger @TigerStars @MillionaireTiger @MillionaireTiger so more people learn sell cash covered put on good stocks and earn 1% or more per month
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