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    Ah yes, GSX again. This idea was first publicized by Citron a month ago, but the stock price went on a tear since. Just quickly scanning to see if any new revelations came out. The smoking gun appears to be a former GSX manager who’s testifying that he ran a botnet to fake users on the platform.

    GSX itself has a room, in this computer room there are over 10,000 machines, we call them the group robots, which is used to control [the operation]. One person can control about 1,000 cell phones without a problem, and these can be operated remotely or from the room, I can control all of the machines. Then I can imitate the data generated by a real student or real buying, this is already a very mature technology

    GSX sites are also leaking a bunch of user data, which they downloaded and analyzed for bot-like behavior. Seems quite convincing all in all.

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      Stock tanked 7% today, looks like MW does have some sway!

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      At the end of the day there’s no innovation that APRN can compete on, only cost cutting. Shipping and labor maybe they can squeeze a few percent out. You say they want to cut marketing to the bone? Risky play, don’t see that their brand is strong enough to spread by word of mouth.

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        WeWork blowing up and potentially defaulting on a huge amount of office space can’t help the situation either.

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          Psychologically, with a $112mm termination fee, I don’t believe the board of Advent will let this deal fall through. It’s a 54B fund, this deal isn’t big enough for them to be waffling like this.

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            EY refusing to sign off on Q4 2019 results; Q1 2020 results tomorrow. Wow. Just wow. This should be interesting to listen in on.

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              Hm, nothing much happened.

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              Interesting, thanks. Any easy place to look up # of analysts covering?

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                Bloomberg terminal if you can swing it

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                Stock now down 80% YTD…

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                  Dropbox is what I would call an “utility tech company”. It syncs your files from point A to point B, and that’s it. There’s no way to position itself as a luxury brand that could command a higher price point, and more importantly, there’s no vendor lock-in. Microsoft’s and Google’s offerings lock you in by integrating with Office software.

                  Therefore, any Dropbox customer will rationally just switch to the provider with lower prices, and the margins become a race to zero. Have to give credit to Dropbox’s management team btw, their gross margin sits at a ridiculous 76% as of Q4 2019.

                  Trying to find comparables for “utility tech companies” and their gross margins:

                  • Twilio (TWLO): 53%
                  • Equinix (EQIX): 48%
                  • Akamai (AKAM): 64%

                  Hard to define, but my heuristic is if the consumer doesn’t care about the brand and is perfectly happy switching to an identical provider.

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                    Took a look through the 10k. Losing money every year, net loss $33M in 2019. BUT very healthy balance sheet with $155M in cash and only $24M in debt. This means INSP can continue in its current state for 4 more years even without taking on more debt. In other words they have half a decade to improve their tech or hit a moonshot.

                    BTW @wolfpack, if nobody’s buying where’d the $82M in revenue come from?

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                      Semi-popular in Germany apparently. But I could see COVID causing a big hit.

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                      If you go to Google Play Store and sort by the newest ratings, you can see that the app has less than 10 reviews in the last year [1]. Either dying app or user numbers completely fake IMO.

                      [1] https://play.google.com/store/apps/details?id=com.akazoo.music&hl=en_US&showAllReviews=true

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                        The coronavirus pump is insane…Gilead up 9% on “news” that remdesevir trial was inconclusive, but some patients recovered (which we already knew about). Not surprising to see a ton of microcaps try to cash in on this pandemic.

                        As for WORX…yeah looks like a scam. They even have a subsidiary Victory Fighting Championship which is the “premier mixed martial arts organization in the Midwest.” ROFL, you can’t make this shit up.