Saturday, May 28, 2022
  • Home
  • About Us
  • Disclaimer
  • Privacy Policy
  • Contact Us
No Result
View All Result
WORLDHAB
  • Breaking
    • India
    • World
    • Politics
  • Business
    • Finance
    • Insurance
  • Crypto
  • Entertainment
  • Sports
    • Football
    • Cricket
    • Basketball
    • Tennis
    • WWE
  • Lifestyle
    • Fashion
    • Food
    • Health
    • Pets
    • Travel
    • Romance
  • Tech
    • Android
    • iOS
    • Games
    • Laptops
    • Mobiles
    • Gadgets
    • Social Media
  • Breaking
    • India
    • World
    • Politics
  • Business
    • Finance
    • Insurance
  • Crypto
  • Entertainment
  • Sports
    • Football
    • Cricket
    • Basketball
    • Tennis
    • WWE
  • Lifestyle
    • Fashion
    • Food
    • Health
    • Pets
    • Travel
    • Romance
  • Tech
    • Android
    • iOS
    • Games
    • Laptops
    • Mobiles
    • Gadgets
    • Social Media
No Result
View All Result
WORLDHAB
No Result
View All Result

Home » News » Sahm Adrangi is Blowing The Whistle on Suspicious Patterns by QuinStreet

Sahm Adrangi is Blowing The Whistle on Suspicious Patterns by QuinStreet

April 14, 2018
in News
12
0

In a scathing new report, private investment firm Kerrisdale Capital, lead by CIO Sahm Adrangi, has revealed that internet marketing company QuinStreet could be skirting clients with fraudulent web traffic and unethically driving up stock.

The 38-page report outlines the company’s questionable recent practices, cites conversations with former employees and highlights why the company might resort to such measures.

QuinStreet has been a publicly traded company for the past eight years, but in the report’s findings, over the last eight months, shares have quadrupled. “Fueled by a frothy market and a reversal of its longstanding trend of declining sales. QuinStreet now trades at a sky-high multiple of 60x operating profit,” the report states.

Kerrisdale Capital, a hedge fund investment manager, “is best known for its short activism, which involves sharing research on companies that we short,” its founder and chief investment officer Sahm Adrangi told Which-50. “Our research seeks to correct broadly held misconceptions about these companies’ fundamental business prospects. We share our research on our website, third-party investing-related sites, and on Twitter.”

And when recently looking into QuinStreet, the company was confused as to how share prices could increase when the company had not only historically low stock prices, but was working with antiquated technology that investors steered clear from.

In their findings, Kerrisdale Capital suspects QuinStreet which is essentially a digital marketing firm that works by funneling potential leads from niche sites directly to advertisers — was faking leads. “We believe the uptick in revenue is a sham: a mix of malware redirects, bogus leads from web surfers trying to score ‘swagbucks,’ and a one-time lucky deal with Progressive that has already plateaued.”

Quin Street

The news comes as QuinStreet releases its preliminary 3rd quarter Fiscal estimates for 2018, saying they expect to bring in over $115 million after over 45% year-over-year growth. In response to the report, the company released the following statement (in part).

“We have reviewed the negative report published about QuinStreet by Kerrisdale Capital Management and feel compelled to respond given its invalid claims and conclusions, and its negative impact on our stock price…QuinStreet’s business model and relationships with clients are based on the performance of our marketing and media programs for them.”

But, one of the biggest criticisms by Kerrisdale Capital was that “almost a quarter” of the company’s revenue is from the auto insurance provider Progressive. On top of that, because the rest of the traffic could be fake, Kerrisdale Capital is speculating investors could take notice soon.

The other big revelation from the report comes from the QuinStreet management. The researchers from Kerrisdale Capital found that the QuinStreet ‘insiders’ like their CEO and CFO have already begun selling their stock in the company. “Even giving QuinStreet the benefit of the doubt for its suspicious traffic, bad management, and weak long-term competitive advantage, its stock price should only be ~$5-7 –roughly 50% below the current levels.”

After the report was released this week by Sahm Adrangi, QuinStreet shares fell 17-percent.

On top of the recent revelations, QuinStreet does have a checkered past. About a decade ago, the company was embroiled in a multi-state scandal for its business practices that targeted military veterans with alleged ‘deceptive recruiting practices’ for clients of a for-profit school. The digital marketing firm denied the allegations and nothing came of it after that.

Share5Tweet3SendShare1Pin1Share
Previous Post

Andy Wirth Retires as CEO from Squaw Valley

Next Post

IPL Score 2018: RCB vs RR scorecard, Match 11 Result

Hari

Hari

Hari Prasath has been a full-time Internet Entrepreneur and Life Hacker since 2014. He is a self-taught web developer and Marketing expert building many Online Businesses and testing greatest strategies with Clients during the day and at night, build Niche websites.

Related Posts

gold silver trading

Explore Gold and Silver Trading as CFDs

May 23, 2022
hotbit exchange

Crypto alert like Bubbles 

May 23, 2022
best crypto to buy now

The Best Crypto Coin To Buy Now

May 20, 2022
cryptocurrency

Entering the World of Cryptocurrencies and Mining Helium Gateways

May 14, 2022
post card for real estate

Why Real Estate Postcards are Still Effective in a Digital World (and How to Use Them)

May 5, 2022
top US cities to invest in real estate

Top US Cities to Invest in Real Estate for 2022

May 5, 2022
Raja Rani Coupon Result

Raja Rani Coupon Result Live Today – Hourly Update

April 29, 2022
11 people killed in Kalimedu chariot festival near Thanjavur

11 people killed in Kalimedu chariot festival near Thanjavur

April 27, 2022
Next Post
RCB vs RR Live score - IPL live score 2018

IPL Score 2018: RCB vs RR scorecard, Match 11 Result

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

SEARCH

No Result
View All Result

FOLLOW US

Follow our social media pages and get updates quicker than ever.

Facebook Twitter Youtube Instagram

RECENT POSTS

kratom capsule

How Much Kratom Is Found In A 00 Capsule?

May 27, 2022
delta 8 vape pen

Can You Control Nausea And Vomiting With Delta 10 Support?

May 27, 2022
gold silver trading

Explore Gold and Silver Trading as CFDs

May 23, 2022
hotbit exchange

Crypto alert like Bubbles 

May 23, 2022
best crypto to buy now

The Best Crypto Coin To Buy Now

May 20, 2022

TRENDS

  • DOWNLOAD BEAST MOVIE
  • DOWNLOAD KGF 2 MOVIE

ABOUT

Founded in 2016, WORLDHAB delivers news from the various niches around the world for the targeted audience. For any advertising queries, contact us anytime.

We got approved in Google news and Bing news in earlier 2016. And since then, we help small businesses to grow their business by improving their website authority.

POPULAR CATEGORIES

  • Business
  • Finance
  • Insurance
  • Bitcoin
  • Entertainment
  • Sports
  • Football
  • Cricket
  • Lifestyle
  • Health
  • Travel
  • Romance
  • Technology
  • Education

FOLLOW

Facebook Twitter Youtube Instagram Pinterest LinkedIn Vimeo

WORLDHAB STATS

  • Monthly Traffic: 50,000+
  • Site Age: 5 Years
  • Google News Approved
  • Bing News Approved
  • Alexa Rank: 912,985
  • Domain Rating: 22
  • URL Rating: 24
  • Domain Authority: 33
  • Page Authority: 38

CONTACT

For Guest posts, Sponsored posts, Advertising enquiries, contact: support@worldhab.com

  • Home
  • About Us
  • Disclaimer
  • Privacy Policy
  • Contact Us

© 2020 WORLDHAB - Premium WordPress theme by VISION.

No Result
View All Result
  • Breaking
    • India
    • World
    • Politics
  • Business
    • Finance
    • Insurance
  • Crypto
  • Entertainment
  • Sports
    • Football
    • Cricket
    • Basketball
    • Tennis
    • WWE
  • Lifestyle
    • Fashion
    • Food
    • Health
    • Pets
    • Travel
    • Romance
  • Tech
    • Android
    • iOS
    • Games
    • Laptops
    • Mobiles
    • Gadgets
    • Social Media

© 2020 WORLDHAB - Premium WordPress theme by VISION.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.