Educational Development Corporation (EDUC)

[value1008]

EDUC - alert! i and others made a nice little profit on this one a few months ago. Now as of yesterday morning here's a lengthy shortseller piece out on it at S.Alpha by a guy with only 136 followers, but it's being rated a "Top Idea" by S.Alpha editors.

https://seekingalpha.com/article/4058953-davids-sling-turning-boomerang-return-path-educational-development-fv-60-percent-lower?auth_param=a71m:1cds6kk:d280dac2a797ca3aab04152589972dbe&uprof=44

He's giving a price target 60% lower at $3.50.
Serious charges he's making here.

Anyone care to rebut them?

His summary points (note: SSKillz had already discussed the third point some weeks back at the Ihub Savvy Trades board):

• Terminally broken MLM business bleeding consultants at an already rapid rate that should worsen.
• Little to no liquidity remaining; existing leverage and a new banking relationship likely limit flexibility from traditional sources.
• Major execution risks as company undergoes a rip out of a failed IT system implementation and reverts back to an antiquated one.
• Accounting issues, controller resignation, potential restatements and CEO/management arguably posting insider info on message boards/social media.
• Equity fair value 60% lower at ~$3.50 on a probability-weighted basis, but could certainly prove to be worth much less.