A conference that focuses on short selling has been in demand for a long time. The Kase Short Selling Conference gave the attendees what they had been waiting for and more. Among the variety of investment professionals that shared their insight on the industry was Sahm Adrangi, Kerrisdale Capital Management’s Chief Investment Officer. Despite the fact that many people involved with short selling have been having problems picking good picks for their portfolios, Sahm Adrangi has used diligence and research to avoid this.
When choosing companies to short sell, Sahm Adrangi takes an interesting approach as a value investor. Not only do his stock choices create a source of revenue for his business, they also make a difference in society. The businesses that Kerrisdale Capital choose to short generally aren’t just businesses doomed to see a drop in their stock prices, they’re engaging in business practices that are misleading and sometimes participating in fraud
At the Kase Conference, Sahm Adrangi discusses a few of these businesses that have caught his interest in recent years. One of these being QuinStreet, a company that is paid to place advertisements and generates traffic for their clients. While they have recently seen a significant increase in business and traffic to their clients, it’s not likely to be coming from where their clients believe.
It is believed that QuinStreet is one of the many companies that are practicing ad fraud. Through the use of traffic generated from sites like Swagbucks that pay users to click on ads and even completely artificial methods like bots. Clients pay firms like QuinStreet for each click that their advertisements get, but they expect them to be from parties that are interested in their services.
While these less than honest practices may drive up the stock prices of these advertising companies temporarily, Sahm Adrangi is certain that it will come to an end soon as their practices are discovered. While users who get paid for clicking on these links may enjoy the extra few bucks they earn, the businesses that are paying for those clicks are wanting valid traffic to their websites,