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  "documentTitle": "GSX Techedu (GSX)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-02-25 00:00:00",
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  "notes": "The slide uses a chart to establish a baseline for market pricing, then pivots to a list of four specific accusations of fraud.",
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      "text": "In this report, we will detail our analysis of the available information and the reasons why believe that GSX is what most companies that are too good to be true end up being: a fraud.",
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      "text": "Hourly ASP of major online big-class AST brands",
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      "kind": "list",
      "text": "1. Offloading costs to controlled but not consolidated entities; 2. Creating Fake Enrollments through Third Parties; 3. Super-aggressive, bordering on predatory, marketing; and 4. Cutting corners on the quality of education.",
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      "text": "It all seems so perfect and we can understand how investors were lured into the company's stock by trusting SEC reported numbers. However, experience has taught us that what looks too good to be true often is not.",
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      "text": "In this report, we will detail our analysis of the available information and the reasons why believe that GSX is what most companies that are too good to be true end up being: a fraud.",
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      "text": "After extensive research, we have discovered many aspects that we believe have not been fully understood by the market and should be very disturbing to investors. We believe that GSX's superior financial performance stems from a different mix of \"advantages\", none of which has been properly disclosed because each amounts to a form of financial shenanigans:",
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      "text": "Source: Company data, UBS-S",
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      "text": "Figure 5: Hourly ASP of major online big-class AST brands (Rmb) (Dec-2019)",
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