A new report from Gotham on Endurance
Endurance International Group: Malicious Activities by Gotham City Research
Did Endurance International Group deliberately target customers who engage in malicious activities? Does EIGI aggressively attract customers from the internet underground?
Endurance International Group: A Question Regarding Malicious Activities
Did your employees deliberately target customers within the internet underground community, despite knowing that these accounts would be used for malicious activities, in violation of your own terms of service? Were your employees instructed to do so?
The Delbrook Resources Opportunities Master Fund was up 9.2% for May, bringing its year-to-date return to 33%. Q1 2021 hedge fund letters, conferences and more Dellbrook is an equity long/ short fund that focuses exclusively on the metals and mining sector. It invests mainly in public companies focused on precious, base, energy and industrial metals Read More
Gotham City Research believes that the bulk of EIGI’s reported growth, profits, & cash flow disappear as soon as the company’s suspect activities are exposed and decline.
Companies like Blinkx plc, Lumber Liquidators, and Home Capital Group, were all perceived by some investors as good companies, with charismatic management, until they were not. Other investors were aware of the red flags, yet shrugged off the concerns of whistleblowers and critics.
In all cases, the markets eventually cared about the whistleblowers’ and/or critics concerns, and each companies’ shares subsequently declined -50% to -90%. We believe Endurance International Group is no different from these companies.
Let’s suppose there were whistleblowers who can prove that EIGI intentionally targeted customers engaging in malicious activities? Or let’s suppose that we or someone else can corroborate such claims.
Why would EIGI engage in such shady business practices?
For now, some market participants have played chicken with our and others’ concerns, just as they did in the cases of Blinkx, Lumber Liquidators, and Home Capital Group. We recommend that you do not do so, lest you be in for a surprise.
See full PDF below.