GigaCloud falls as Culper announces short position in ecommerce firm

GigaCloud Technology

28/09/2023 16:19

** U.S.-listed shares of Hong Kong-based ecommerce firm
GigaCloud Technology  GCT.O  fall 26.3% to $6.98
    ** "We are short GigaCloud Technology Inc ... the company's
business is a fraction of what it has claimed," short-seller
Culper Research says 
    ** Culper does not think it is possible to profitably run 14
warehouses with over 3.7 million square feet which supposedly
distribute hundreds of millions of dollars of furniture with
just 73 employees in the U.S.
    ** Adds this employee base would be insufficient to
profitably handle the scale of business as GCT claims
    ** Short-seller adds it uncovered numerous entities which
are neither named subsidiaries nor disclosed as GCT related
parties, yet which name GCT insiders on corporate documents
    ** GCT did not immediately respond to a Reuters request for
comment
    ** Up to last close, stock up ~66% YTD

 (Reporting by Jaspreet Singh in Bengaluru)
 ((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))