BLI - Berkeley Lights - Short Report

 Recently Scorpion Capital released a short report on $BLI Berkely Lights. 

I had not heard of $BLI before this. I did some digging and initiated my own position in this stock.

What I found:

The claim by scorpion of the flat revenue seems to be correct based on the information available from $BLI.

q3 2020 - 18M
q4 2020 - 21M
q1 2021 - 18M
q2 2021 - 19M

It no longer trades at a 27x revenue multiplier but it's still at about 15x. This is quite high for a company that is losing money quickly (net loss is about the same as their revenue).

It's worth noting that they do not have an annual report for 2020 posted on their site. I know they IPO'd in 2020 but still. https://investors.berkeleylights.com/financial-information/annual-reports

Insider Selling:

There has been an onslaught of selling coming from the CEO, CTO, CAO and a director. Chief accounting officer, that's always a red flag.

I won't regurgitate things from the Scorpion report. 

Let's go to the chart:

You can see the big drop and the followed by a dead cat bounce that trapped many dip buyers. It consolidated sideways/downwards in what's known as a bear pennant. The nasdaq took a dip on Monday 9/20/21 but then recovered mostly, $BLI did not recover along with the nasdaq, it kept going down. Huge red flag. Dip Buyers stuck in the $25-$27 range are in deep trouble. 

I have a price target of $14.50 on this stock as a point of resistance based off of how big the initial drop was. If $14.50 doesn't hold and this sees single digits, this is going bankrupt.  Earnings date is November 10th.

-HagenInvestments