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STEM.US

Blue Orca Report on STEM Misleading Investors Case

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.
Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Fraud
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Investment Bank
Service Provider
Other
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11 January 2023
Collecting participants…
Created by Stan Vick, Scout

Stem Inc

Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. The company offers energy storage systems sourced from origina...

    Ticker
    STEM.US
    ISIN
    US85859N1028
    CIK
    1758766
    Sector
    Technology
    Industry
    Software - Infrastructure
    Country
    USA
    Address
    100 California Street, San Francisco, CA, United States, 94111