Why Blue Orca's Aandahl Is Shorting GDS Capital

The video discusses a thesis on GDS stock, highlighting investigations into the company's data center utilization claims and acquisitions. It alleges that GDS overstates utilization rates and involves insiders in acquisitions, inflating their value. The company's financial health is questioned due to high debt and interest costs. Despite market confidence, the video suggests the growth is illusory. It compares GDS with other companies like 21 Vianet, suggesting a lower valuation due to governance concerns.

What did the investigation reveal about GDS's data center utilization claims?

• The claims were accurate and verified.

• The claims were not investigated.

• The data centers were underutilized compared to claims.

• The data centers were overutilized.

What was discovered about GDS's acquisitions?

• They were all above board with no issues.

• The acquisitions were undervalued.

• Insiders were involved on both sides, inflating values.

• There were no acquisitions made by GDS.

What financial issue is GDS facing according to the analysis?

• GDS has surplus cash reserves.

• GDS's interest payments exceed its gross profits.

• GDS has no debt issues.

• GDS is debt-free.

What is the main reason for the high stock prices of GDS?

• The belief in a growth narrative.

• The company's strong financial health.

• The company's low debt levels.

• The company's high dividend payouts.

What lesson is emphasized regarding due diligence in investments?

• Rely on others' due diligence.

• Always conduct your own due diligence.

• Financial statements are always reliable.

• Due diligence is unnecessary.

What is the potential for change within GDS according to the analysis?

• The company has already undergone significant changes.

• The company is open to external management.

• The company is controlled by insiders, making change unlikely.

• The company is likely to change leadership soon.

Which company is suggested as a better investment alternative to GDS?

• Samsonite

• Blue Orca Capital

• Sino Forest

• 21 Vianet