This episode dives into the world of short-selling and activist investing with guest Edwin Dorsey, the writer behind The Bear Cave Substack. Edwin tells CJ the story of how he made a name for himself by exposing wrongdoing at Care.com and how this inspired his current writing career. He goes on to explain how short selling works and what differentiates it from long-only investing, before talking about how he researches corporate misconduct, the clues he looks for in consumer industry reports, and other red flags apparent in the actions of management, auditing firms, and board members. He also discusses what it means for employees when an activist investor takes a stake in your company.

Subscribe to Edwin’s newsletter, The Bear Cave

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

—

SPONSORS:

NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

—

@cjgustafson222 (CJ)

@StockJabber (Edwin Dorsey)

@turpentinemedia

—

TIMESTAMPS:

(00:00) Preview and Intro

(02:35) Sponsor - NetSuite | Mercury

(05:16) The Care.com Story That Put Edwin on the Map

(09:43) The Genesis of The Bear Cave

(13:09) An Introduction to Short Selling

(16:29) Sponsor - Maxio

(17:39) Betting on Binary Outcomes

(20:38) What Edwin Looks for in a Short Sell

(24:16) Management Turnover as a Short Sell Signal

(26:31) Red Flags Relating to Auditors

(31:35) Corporate Fraud and Financial Misconduct Red Flags

(41:13) Financial Statement Mishaps

(44:36) Why Edwin Watches Board Members Over CEOs or CFOs

(48:07) Activist Investing: What It Means for Employees

(53:33) A Parting Story on Exposing Corporate Wrongdoing

(55:27) Wrap

Get full access to Mostly metrics at www.mostlymetrics.com/subscribe

Exposing Corporate Misconduct with Edwin Dorsey, Writer Behind The Bear Cave

Run the Numbers