Unite with Fellow Investors
Choose the Best Attorney
Follow Case Progress
id: 531, Created by Stan Vick, Scout
Blue Orca Report on STEM Misleading Investors Case
What do I get by joining?
- You will get case updates and receive a payout in case of success
- If you would like to actively participate, you will be connected to the attorney
- No, you do not pay anything out of your pocket neither to us nor to attorney
On January 11, 2023, short-seller Blue Orca issued a report concluding that STEM is financing its flagship customer to purchase energy storage systems from STEM.
"Rather than a “big win” and proof that STEM could compete for big utility-scale projects, we think STEM won its supposed flagship deal by surreptitiously paying for it" stated by Blue Orca.
- As the report stated, STEM’s software business is a mirage, and the Company is misleading investors by disguising service revenues from leasing hardware as software revenues.
- Apart from a busted recent acquisition, almost all of STEM’s purported software revenues are derived from the misleading categorization of system leases as ‘software’ revenues.
- 87% of these leased energy storage systems are not even owned by STEM, but by unconsolidated special purpose vehicles.
- In reality, STEM’s purportedly special software business generates a tiny fraction of the revenue claimed by the Company.
- The remaining portion of STEM’s purported “software” revenues are derived from the early 2022 acquisition of AlsoEnergy. The Company grossly overpaid for the deal, and in its latest quarterly earnings call, STEM warned that AlsoEnergy’s revenues were shrinking.
According to the report, this explains STEM’s audit warnings over revenue recognition and the strange internal control and accounting deficiencies revealed in SEC filings.
If the report is based on true facts, then Investors have every reason to suspect the Company and its Management of gross violations, which have led and continue to depreciate the value of their shareholding.
Failure to Disclose,
Breach of Fiduciary duty,
Shock Event Date
11 January 2023