A former GSX manager corroborated our conclusions, and even detailed how GSX’s bot operations work. To the best of the applicable Muddy Waters Entity’s ability and belief, all information contained herein is accurate and reliable, and has been obtained from public sources that the applicable Muddy Waters Entity believe to be accurate and reliable, and who are not insiders or connected persons of the Covered Issuers or who may otherwise owe a fiduciary duty, duty of confidentiality or any other duty to the Covered Issuer (directly or indirectly). You knowingly and independently agree to submit to the personal and exclusive jurisdiction of the state and federal courts located in San Francisco, California and waive your right to any other jurisdiction or applicable law, given that Muddy Waters Research and its affiliates are based in San Francisco, California. Reports are based on generally available information, field research, inferences and deductions through the applicable Muddy Waters Entity’s due diligence and analytical process. You agree that each Muddy Waters Related Person is a third-party beneficiary to these Terms of Use. GSX Techedu Inc. May 29, 2020, 06:49 ET . We maintain our view that GSX is a massive fraud – i.e., it is a nearly empty box. Copyright © 2020 Muddy Waters Research, All Rights Reserved. You further agree to do your own research and due diligence before making any investment decision with respect to securities of the issuers covered herein (each, a “Covered Issuer”) or any other financial instruments that reference the Covered Issuer or any securities issued by the Covered Issuer. Watch the full interview here.… more, Block on Yahoo Finance Video discussing morality shorts. The Company respects Muddy Waters' efforts. The reports are the property of the applicable Muddy Waters Entity that published that report. Block on CNBC’s Squawk Box discussing MW's latest short, eHealth Inc. GSX’s response: “Muddy Waters is bluffing.” Teen Teacher Born in a poor village in northern China, Chen’s father helped him enroll in a tuition-free vocational training school for teachers. These Terms of Use govern current reports published by Muddy Waters Research and supersede any prior Terms of Use for older reports of Muddy Waters Research, which you may download from the Muddy Waters Research’s website. Sign up for our mailing list and receive research reports and other related news and updates from Muddy Waters Research. If any provision of these Terms of Use is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties’ intentions as reflected in the provision and rule that the other provisions of these Terms of Use remain in full force and effect, in particular as to this governing law and jurisdiction provision. Muddy Waters Capital is an investment adviser with the U.S. Securities and Exchange Commission and is not registered as investment adviser in any other jurisdiction. The Company respects Muddy Waters' efforts. You agree that use of the research on this website is at your own risk. In relation to the United Kingdom, the research and materials on this website are being issued only to, and are directed only at, persons who are Permitted Recipients and, without prejudice to any other restrictions or warnings set out in these Terms of Use, persons who are not Permitted Recipients must not act or rely on the information contained in any of the research or materials on this website. Muddy Waters peels back the layers, often built up by seemingly respected but sycophantic law firms, auditors, and venal managements. Giving investment advice requires knowledge of your financial situation, investment objectives, and risk tolerance, and Muddy Waters Capital has no such knowledge about you. Watch the full interview here… more, Block on CNBC Squawk Box discussing a new kind of activism - morality shorts. We also adjust reported 2019 op… more, EHTH’s highly aggressive accounting masks what we believe is a significantly unprofitable business. GSX Techedu Inc. May 19, 2020, 07:18 ET. Muddy Waters peels back the layers, often built up by seemingly respected but sycophantic law firms, auditors, and venal managements. Share this article. GSX’s responses since consist largely of drivel, designed to obfuscate and lie. Latest Reports. GSX data by YCharts. Muddy Waters Research is an online research publication that produces due diligence-based reports on publicly traded securities, and Muddy Waters Capital LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Based on variable costs alone, we estimate that EHTH will lose approximately -$135 from each MA member it enrolled in 2019. We are short GSX because we conclude that it is a near-total fraud. Muddy Waters Research is affiliated with Muddy Waters Capital. We conclude that at least ~70% of its users are fake, and we think it’s quite likely that at least ~80% of its users are fake. The reports on this website have been prepared by either Muddy Waters, LLC (“Muddy Waters Research”) or Muddy Waters Capital LLC (“Muddy Waters Capital”). Read More . Sorry, your blog cannot share posts by email. So what. BEIJING, May 19, 2020 /PRNewswire/ -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Research's latest report, dated May 18, 2020. The Company respects Muddy Waters' efforts. On May 18, research firm Muddy Waters told the world it was short GSX Techedu stock. GSX: Small Classes, Big Lies (GSX US) May 28, 2020 On May 18th, we published our research on GSX in which we concluded that at least 70% of GSX’s purported users are fraudulent, and quite likely the real percentage of fake users is over 80%.