A Tale of Two Short Candidates – $DNMR and $BEKE

In this new format where we look to re-examine short theses after the market and company management have had time to process and respond, Carson Block of Muddy Waters Capital does just that for his two most recent targets, Danimer Scientific ($DNMR) and Ke Holdings ($BEKE). In the case of Ke Holdings Block outlines why both he and the data analytics firms verifying Ke’s agent data can be correct despite seemingly reaching different conclusions, and makes comparisons between this and other Chinese short candidates like GSX Techedu Inc. and Joyy Inc. In the case of Danimer Scientific, Block focuses on how the response from management could be interpreted as a shadow production cut and the bigger issues around the commercial viability of Danimer’s products and their development stage.