BATON ROUGE, La., June 17, 2020 /PRNewswire/ -- Prescience Point
Capital Management ("Prescience Point"), a private investment
manager that focuses on investigations of public companies,
published a negative research report today supporting its
short position in shares of Enphase Energy, Inc. (NASDAQ:
ENPH), a maker of microinverter systems for residential and
commercial use based in Petaluma,
CA.
Prescience Point has been closely scrutinizing Enphase for over
two years and we believe the company's financial performance has
become increasingly disconnected from reality since our initial
reports were published in July
2018 and August 2018.
Following our latest investigation, which included interviews of
numerous former employees, we believe that Enphase's financial
reports are not reliable, and that the 4,653% increase in its share
price since CEO Badri Kothandaraman
was promoted to CEO is unwarranted.
"The explosive growth that Enphase has reported to investors
over the last two years is nothing but a sham which has lined the
pockets of those at the top of the company," said Eiad Asbahi, Founder and Portfolio Manager of
Prescience Point. "We believe the evidence presented in our report
will result in multiple government investigations, a major
accounting restatement, shareholder lawsuits and a delisting of
ENPH shares from the NASDAQ."
Our research suggests that at least 39%, or $205 million, of US revenue reported by the
company is potentially fabricated, as is a significant portion of
the company's international revenue. Multiple former employees in
India independently told our
private investigators that Enphase was fabricating figures it
reports publicly, and that the company is using overseas operations
to help executives perpetrate potential accounting
violations.
Our research also suggests that Enphase executives and board
members, as well as its previous largest shareholder, likely
learned of the existence of our private investigation. This
is supported by the unprecedented number of shares these parties
sold from late-May to mid-June, which is right around the time that
our private investigation had wrapped up. Their timing and
shear magnitude of sales appears to be a rush for the exits ahead
of Enphase's coming downfall.
Click here to download Prescience Point's full report on Enphase
[insert link].
Prescience Point has a short position in Enphase and stands to
benefit if its share price falls.
About Prescience Point Capital Management
Prescience Point Capital Management is a private investment manager
that employs forensic investigative techniques to unearth
significant mispricings in global markets. The firm specializes in
extensive investigations of difficult-to-analyze public companies
in order to uncover significant elements of the business that have
been overlooked or ignored by others. Their publicly-available
research focuses on exposing corporate wrongdoing and has been
followed by resignations of auditors, CEOs and CFOs, earnings
restatements, SEC investigations and stock delistings.
Prescience Point manages private funds on behalf of clients and
principals and takes positions both long and short in support of
their research. The firm invests across a broad set of equities
that they believe have abnormally large disparities between what
their underlying businesses are intrinsically worth and what their
securities sell for.
The firm was founded by investor Eiad
Asbahi in 2009 and is headquartered in Baton Rouge, LA. Prescience Point Capital
Management is a registered investment advisor with the State of Louisiana a member of the Financial
Industry Regulatory Authority, CRD number 152721. For updates
follow Prescience Point on Twitter @PresciencePoint
Disclaimer
THIS RELEASE EXPRESSES SOLELY PRESCIENCE
POINT CAPITAL MANAGEMENT'S OPINIONS. Use Prescience Point's
research opinions at your own risk. This is not investment advice
nor should it be construed as such. You should do your own research
and due diligence before making any investment decisions with
respect to the securities covered herein. Forward-looking statement
and projections are inherently susceptible to uncertainty and
involve many risks (known and unknown) that could cause actual
results to differ materially from expected results. You should
assume we have a short interest in Enphase Energy stock and
therefore stand to realize significant gains in the event that the
price of such instrument declines. Please refer to our full
disclaimer located on the last page of our research report (linked
herein).
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SOURCE Prescience Point Capital Management