Research Update - January 26, 2022

Note:  This is only the research summary.  The full 11-page Research Update report, with all supporting data and analysis, is only available to clients.  You must be signed-in to see the attached PDF. 

Happy new year.  I didn’t see you all on the 1st, so I’m catching up!  Bitter cold here in in Minnesota now, the great north woods part of the USA.  The days are sunny and the snowpack makes them even brighter. The cardinals are back at the birdbath and each day we get to start anew.  Good enough for me!  Let’s get to work.

Additions to Watch List:  Newly confirmed, undisclosed SEC Investigations.

  • Ericsson – ERIC:  Allegations of a breached FCPA prosecution agreement.  Oops.
  • Oracle Corporation – ORCL:  This long-term Watch List resident is back.
  • Stryker Corp. – SYK:  SEC Investigation magnet. An unsettling disclosure found.

Maintained on Watch List: Undisclosed SEC investigations again confirmed. Warnings reiterated after again confirming undisclosed SEC investigations.

  • Atmos Energy Corp. – ATO:  Now confirmed twice since Oct-2020.
  • Meta Platforms, Inc., fka, Facebook, Inc. – META/FB:  SEC frequent flyer.
  • Smith & Nephew PLC – SNN:  Now confirmed twice since Feb-2021.

Disclosed SEC investigations recently confirmed as active and ongoing.  Not on Watch List. We summarize what’s going on with analytical commentary. 

  • Blackbaud, Inc. – BLKB:  Excellent disclosures on a large ransomware probe.
  • Celsius Holdings, Inc. – CELH:   Be careful.  Celsius management is playing you.
  • Portland General Electric – POR:  The investigation timeline doesn’t make sense.
  • Raytheon Technologies – RTX: It looks like FCPA. But they’re not calling it FCPA.

Undisclosed SEC investigative activity now appears over.  

  • American Vanguard – AVD:  No idea what happened with the SEC. Details below.

Notable events/alerts impacting companies already on our Watch List.

  • Gilead Sciences – GILD:  General Counsel announces retirement. He’s not leaving until summer 2022. Plenty of time for hammock shopping. We highlight it to baseline what a planned retirement looks like for Gilead. Disclosure excerpt below. 
  • SeaDrill Ltd. – SDRLF:  Out of bankruptcy and sporting a new name.  Has to feel pretty good.  Full details in the Seadrill 6-K’s filed 13-Jan-2022, and 20-Jan-2022. Here’s your excerpt: “Seadrill New Finance Limited (to be renamed Paratus Energy Services Ltd.) (the ‘Issuer’) Announces Emergence from Chapter 11.”  

That’s all you get.  I leave you all with gratitude for your continued support and good wishes for a prosperous and healthy new year. 

 -  John P. Gavin, CFA



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