Investment Guru Sahm Adrangi Examines the Impact of Ad Fraud

Speaking at the recent Kase Learning conference on short selling that was held at the Omaha Hilton, market guru Sahm Adrangi talked of emerging targets for unscrupulous stock pricing tactics, which is known as ad exchange intermediaries. During his presentation, Sahm explained the role of ad exchange intermediaries, companies that play the role of matchmaker between advertisers and websites. The websites meet specific thresholds about clicks and number of page views.

How Ad Fraud Works

Most of the companies that purchase advertising space assume that there are actual, live humans behind the numbers of clicks and views. However, Sahm Adrangi says that many of these statistics are inaccurate because they may be due to visits by bots and other automated systems. If the click and view numbers presented for purposes of selling ad space are being generated automatically in this way, it is viewed as ad fraud because the company that is purchasing space does not receive the service.

How False Ad Data Affects Shareholder Value for Exchange Intermediaries

From Sahm’s point of view, ad exchange intermediaries who offer ad space to their clients by inaccurate engagement and readership data expose themselves to the possibility of adverse stock price movements. The exposure results from the sale of misleading advertising services. If an investigation is carried out into the practices carried out by ad exchanges and revelations emerge of revenue being generated from falsified data, the shareholder value of the companies involved may drop drastically.

Sahm Adrangi’s Short Selling Activism

Sahm Adrangi has become globally renowned as a short-selling activist, thanks to his work in exposing Chinese firms suspected of fraudulent trading practices, resulting in the companies’ market value dropping by about $10 billion. The success of Mr. Adrangi’s short-selling campaigns has helped to increase the capital managed by his firm, Kerrisdale Capital, from just $1 million to about $180 million today. Despite his success, he continues to be active as a short-selling activist, often releasing informative reports that explain why specific companies may be overvalued, or if he believes that a particular industry is operating under pretenses.

https://www.benzinga.com/topic/sahm-adrangi

Zalik Finally Files For A GreenSky Credit IPO

Daivd Zalik, founder and CEO of GreenSky Credit, has managed to build a fortune estimated at $2.5 billion. He has accumulated all of this wealth under the radar with an innovative financial services tech startup. His company, GreenSky Credit, operates through a smartphone app. Affluent homeowners log into the app to see what kind of home improvement loan that they can secure. Loan options pop up immediately and approval happens just as quickly.

GreenSky Credit works with over 17,000 contractors who perform all of the renovations. The contractors give him 6% of the loan amount and then Zalik takes that loan to the bank. the bank assumes all of the risks and kicks the tech startup 1% of the loan amount, as well.

Forbes has estimated $250 million in revenue in 2017 alone. Moody’s has projected $400 million in revenue in 2018. And this financial tech company has stayed under control of Zalik for its entirety. But the Wall Street Journal has just discovered that Zalik has confidentially filed for an IPO with the Securities and Exchange Commission.

The IPO has a potential to drum up $1 to $5 billion. However, Zalik could still rescind his IPO in order to protect his brainchild. After all, this high school dropout hatched the idea for GreenSky Credit back when he was a teenager.

The reclusive billionaire has managed to figure out a way to connect homeowners with lenders without assuming any risk. He’s the middleman and doesn’t own a thing. Contractors do the work while banks assume the risk. That’s how Zalik has used GreenSky Credit to amass a $2.5 billion fortune.

And this flies in the face of standard Silicone Valley business protocol. Other massive companies like Uber and Stripe remain private so long as they have the quarterly earnings to fuel the business operations. And it’s rather en vogue for young tech startups to fight against the establishment by avoiding banks altogether.

But Zalik and GreenSky Credit have embraced banks. Zalik has also worked hard throughout his life to avoid diluting his ownership stake. It’ll be interesting where this IPO takes him.

https://resources.greenskycredit.com/healthcare/case-study-clearsight-center-helps-patients-see-the-benefits-of-financing