Energy storage firm Stem falls after Blue Orca takes short position

Stem

11/01/2023 15:14

** Shares of energy storage network provider Stem Inc
 STEM.N  down 6.7% after Blue Orca Capital releases short report
    ** "We are short STEM, a broken SPAC which we think covertly
finances its flagship customer, disguises hardware lease
payments as software revenues and peddles bogus non-GAAP
metrics, all while insiders dump stock" - Blue Orca Capital
    ** The short seller report says STEM overpaid for its 2022
acquisition of solar asset management software co AlsoEnergy
Holdings, with AlsoEnergy's revenues already shrinking
    ** Blue Orca says STEM is financing its flagship customer to
purchase energy storage systems from the company, adding that 
it believes the co won its "supposed flagship deal by
surreptitiously paying for it"
    ** Stem did not immediately respond to a Reuters request for
comment
 (Reporting by Ankit Kumar in Bengaluru)
 ((Ankit.Kumar2@thomsonreuters.com))