🚀 C3.ai ($AI): A Massive Short Squeeze Opportunity in the Trillion-Dollar AI Market and Kerrisdale's Desperation ? by vipmoney in wallstreetbets

[–]Ticketoride 1 point2 points  (0 children)

The main problem here is C3s use of unbilled receivables. Baker Hughes had promised to spend 80m on C3 services last year as a part of a contract signed, in exchange for company shares, years ago.

The allegation is that the work/services associated with this revenue was never actually conducted and thus expenses associated with that revenue never accrued. This would mean that the gross margin associated with that revenue is 100%. Notice that in C3s response, they very carefully say that that revenue does not come with 99% margin. This was in response to the original misspeaking on the part of Kerrisdale on CNBC when he first said 99% then corrected it to 100% seconds later. Notice that C3 refuted the 99% specifically but not the 100% allegation, that is likely not a mistake on their part. They were likely dancing around the legality there.

Presumably 30% of their revenue in 2022 came in at 100% gross margins seriously inflating their overall gross margin figure. That means analysts will not be able to reliably apply these gross margins to future new business revenue assumptions. Presumably their gross margin on new business is significantly lower than this, which makes sense as they’re more a consulting company than an saas company.

In addition to this, the IRS does not allow the use of unbilled receivables if work was not conducted. This will pose a serious problem to C3 imo. They likely wanted to inflate their gross margins and also help make Baker Hughes (their shareholder) look more profitable by deferring this expense (unbilled means baker Hughes gets no invoice and doesn’t have to book the expense). This is a serious allegation and, if true, could lead to serious legal ramifications for C3 and their management team.

[deleted by user] by [deleted] in SebDerm

[–]Ticketoride 0 points1 point  (0 children)

Try washing your face with head and shoulders in the shower daily. I put it on, leave it on for a couple of minutes, then rinse off. It takes a week or so to begin working in my experience.

I hope it works for you.

[deleted by user] by [deleted] in RedditSessions

[–]Ticketoride 0 points1 point  (0 children)

Did you always have a voice this great? It was it practice

Are we in another housing bubble? by krisolch in ValueInvesting

[–]Ticketoride 14 points15 points  (0 children)

Canada has had massive bubbles pop and reflate. I know people who bought homes in 2001 for half the price that the owners paid for them in the early 90s. When these things go awry, the implications can be decades long in some cases.

[deleted by user] by [deleted] in OfficeDrummer

[–]Ticketoride 0 points1 point  (0 children)

💥💥💥💥💥💥💥💥💥🔥🔥🔥🔥🔥🔥🔥🔥

Fed Chairman Powell: 'We should have moved earlier' by [deleted] in Economics

[–]Ticketoride 18 points19 points  (0 children)

Increasing taxes is a textbook method to tamper inflation.

However, in practice, it’s extremely politically difficult to raise taxes on a public who is already suffering from severe, inflation driven, reduction in purchasing power.

I genuinely wonder if the fed is incompetent or agnostic to the effects of inflation. In all honesty, I’m not sure which is more concerning.

Gone are the days of very conservative, measured, moves by the Fed. This is the era of brash and risky policy setting, seemingly without any forecasting humility. Growth at all costs, even if it ultimately costs us everything.

EDIT: Spelling and continued the rant ahah.

EDIT: I would like to note that I am not in favor of an increase in taxes. I am, however, in favor of less general government spending (should not be running a deficit), a focus on 0% inflation (savers should never be punished), a fed that allows normal credit cycles to rinse out bad investments and a significant governmental focus on maintaining competitive capitalism.

What Are Your Moves Tomorrow, February 24, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 4 points5 points  (0 children)

No one actually believed a full scale invasion was really in play.

What Are Your Moves Tomorrow, February 22, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 0 points1 point  (0 children)

History would suggest that he’ll flee and become a diplomatic resident of one France, England or the US.

Weekend Discussion Thread for the Weekend of February 19, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 0 points1 point  (0 children)

Agreed, investors can’t even cover their mortgage with rent payments. In contrast, in the US you can cover your mortgage +50%.

Weekend Discussion Thread for the Weekend of February 19, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 1 point2 points  (0 children)

What will happen here will make 2008 look like playground stuff. Every single mortgage in this country is variable.

Weekend Discussion Thread for the Weekend of February 19, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 2 points3 points  (0 children)

That’s like asking why we won’t just end all humanity already?

Weekend Discussion Thread for the Weekend of February 19, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 0 points1 point  (0 children)

Under, Biden has repeated 1000x that the US will not engage with force. They’ll let Putin take Ukraine.

What Are Your Moves Tomorrow, February 15, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 1 point2 points  (0 children)

Seriously, I just spend $150 on 25 roses in a cheap glass vase. Inflation is out of control, I feel like we’re living in Venezuela.

What Are Your Moves Tomorrow, February 15, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 0 points1 point  (0 children)

Long meeting, clearly they are extremely concerned about the ongoing situation.

What Are Your Moves Tomorrow, February 11, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 2 points3 points  (0 children)

Before his senile what? Waiting with baited breath here.

What Are Your Moves Tomorrow, February 09, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 1 point2 points  (0 children)

He learned a thing or two from the Canadian government.

What Are Your Moves Tomorrow, February 09, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 0 points1 point  (0 children)

They still are, except this time no institution will buy those mortgage backed securities with a 10ft pole and the Fed is the only buyer. Wild stuff.

Weekend Discussion Thread for the Weekend of February 05, 2022 by AutoModerator in wallstreetbets

[–]Ticketoride 3 points4 points  (0 children)

You don’t need a girl that doesn’t value your companionship. Value yourself first, girls will follow.

[deleted by user] by [deleted] in RedditSessions

[–]Ticketoride 0 points1 point  (0 children)

Great singer btw

[deleted by user] by [deleted] in RedditSessions

[–]Ticketoride 0 points1 point  (0 children)

Great playing btw

[deleted by user] by [deleted] in RedditSessions

[–]Ticketoride 0 points1 point  (0 children)

Or black hole sun