Martin Shkreli Analyzes GigaCloud Technology (Full Analysis)

all right what El we got here what was next let me go in order uh GCT this is gigal cloud no Quantum can't be is not going

to be faster in Ai and any space it's just it's all AAR 30 30 or 40 years from now who knows but these aren't going to be the companies they're even going to be

around in 30 or 40 years I'm not even sure Google will be in terms of quantum a lot of people give up it's hard to stay committed and focused to something for that

long large parcel merchandise sales and e-commerce Solutions ocean transportation service so this is a little like flexport

I love these M Market maker truthers that think they understand the stock market it's okay there Jane Street's not going to hurt you I just want to take a half a scent

on every options trade you make and Citadel and two Sigma are trying to do the same thing don't cry too much it won't hurt yeah I think micro strategy is

going to go to like 200 or less you can hold it back sometimes and Ain going to kill you to wait on a trade sometimes oops this is not the right

sheet I don't know [Music] Bitcoin I think it's not just levels it's also sentiment and use I'd be more bullish on bitcoin when people start

getting bearish or even neutral you know Luigi I don't know why you keep copy and pasting the same thing I told you I don't think

so problem the problem with AI is you have huge amounts of state to hold in memory so there's no Quantum Ram

really the cubits are the state so you'd have to hold it somewhere else and then just feed it in and I think you have calibration throughput and all

kinds of like little problems there I think the first place is just to worry

about making any Quantum speed up before there's a Quantum speed up there has a lot of things to be you know have to get done but Quantum speed up is the

so-called Quantum Supremacy you know show me one place where quantum's faster than gpus or CPUs then we're talking then we can have even start

asking questions like that but until we even have that there's no point in really thinking about the future that hard yeah Quantum will probably break break

crypto correct I would say my best advice for trying to get into fund is show a lot of enthusiasm show that you know something show you're really

knowledgeable about one area really excited about one area learn a lot about [Music] investing um I don't think so in terms of a crypto hedge some people have

thought about that it's not a bad idea I would just say that crypto has a lot of facets to it and Quantum is just a very small facet so you're you're not going to get a good

hedge good Hedges are when you can really slice out the factors the overlap of crypto and Quantum is like very very small in the vent diagram and so you're not really going to

get much Factor hedging there crypto can become Quantum proof right now the biggest number that these machines can factor is not very big

so fatat is the man yeah eth will probably be Quantum proof before Bitcoin not sure it'll help yeah yeah exactly every tool that we get

we can use it both ways right [ __ ] retti yeah exactly zitter zitter knows exactly that is exactly right yeah Quantum Internet is like

basically Quantum secured communication there there's ways for Alice and Bob to talk that nobody can e drop on in fact you would be alerted to the E dropping if a third party tried to

observe the state now how that's in a perfect world not necessarily

logical okay so this is a weird little company that could be kind of could be a scam it looks like it's like a Chinese company but it's trading at five times

earnings so it's either a scam or the best long ever but let's let's dig in a little deeper I only spent 10 minutes on so far gigal

cloud of course I know the aash guys well the aosh guys actually invested in DL software no I don't really care about washes okay there is a short report

that's funny yeah it looks it the financials look a little scammy it's like a little too good to be true relative to the valuation of course

but also relative to kind of their like they don't spend anything on their business which is like it's a little hard to get this kind of growth without spending a fortune it happens sometimes

product is so damn good but like they just like the numbers are unrealistic yeah suspiciously cheap foret is really trying to Rally

really bad they really want to get it back up to Highs but like there's only so many baggies

bro says active third party sellers 930 active buyers 7,000 I mean it could be real could be real

it's not impossible I don't know it seems kind of hard for them to have 300 in Revenue single quarter do you think

there's 1.2 billion of Revenue means there's 25 billion of gross market value going through that site I don't know

godell looks better than that we don't have 1.2 billion of Revenue and we don't definitely don't have 25 billion of

gmv I didn't say I was big on esketamine who said that bravado approved it sells well these are all just objective facts

yeah a lot of people like the IV better order filled for for order partially

filled order filled yeah nobody cares about the fundamentals because if you look at qm or any of these other stocks they don't have any fundamentals qmco isn't even a Quantum

company order filled order filled burning up my large and Loan listen man wa waiting might be waiting a long time for these [ __ ] shorts to pay off man can't pay all this

data either data's killing me there's the gmv uh wait a second wait a second

something's up here something's up here hold on my spider senses are tingling they say the

gmv for trailing 12 months how how is this possible they they're saying the gmv can you guys chat take a look at

this 98 million okay 12mth gmv do you guys see the problem with this what's the problem one of you guys

is smart right one you guys is pretty smart got to be somebody what's the problem well it's 12 months it's 12

months vasu you getting there though yeah zitter knows Brian knows it's [ __ ] weird

right oh they're all okay they have more than just that okay okay this makes a little more sense they have Giga Cloud Marketplace gmv and they have third

party seller gmv that's also 12 months ended that's 489 897 but hold on if the sellers and

buyers all right let's assume these are both the case but if I divide by four it's

still 350 in gmv resulting in 250 take great laurant maybe knows but they're not making these

products most companies are 5% take rate on gmv even if you're a reseller you're not you're not making margin come on 10% margin or your wholesaler farma

wholesaler makes two two three% sometimes and this apparently this guy is included in this

guy so I my addback doesn't make sense actually cuz it's all in this top number third party sellers aren't doing that third party sellers

are half the business those are guys doing the same thing just creating a Marketplace at the end of the day lauron it's still they're not manufacturing right so

somebody's manufacturing marking it up to them they're buying as a wholesaler and they're reselling so they are a wholesaler and they also operate a

wholesaler Marketplace totally fine but first party is the first party sales they say are 61 in that quarter and then they turn to

90 this is first party 90 [Music] million and then they did off platform

e-commerce what the hell is that that's just them flipping flipping weight [Music] I'm short 990,000 shares of

retti and 65,000 ion Q being painful but I got something for them order filled come

on yeah it's just not that profitable to do that I don't know it's hard to believe these guys are moving a billion dollars of merchandise and clearing a billion in

Revenue it's low margin revenue and they're running this super lean cost structure I'll hold forever if I have

to I'll take take him to the Grave order filled don't tell me what I'm wasting my time on I like Chinese

shorts be happy to short well give me some tickers I mean wafer and Restoration Hardware wish I sold some

puts retti and I on Q have the same business but people want to squeeze retti [ __ ] joke it's a [ __ ] joke

order filled order partially filled order filled order filed order partially

filled order filled yeah I'm not saying it's impossible order partially filled curious who their auditor is

order filled order partially filled order partially filled order filled oh okay nice I didn't know that

Lauren in terms of the uh buyback that is good the buyback is a great way for

companies accused of being a scam to um to fight back and prove that they're not cash flows speaks for itself

yeah they actually have to do the B I agree oh fi order partially filled order

filled unbelievable rally how do I short some more see order filled oh my God it's crazy um micro strategies liquidation price I

don't know it's something for totally insane order partially filled order partially

filled order filled all right time to go balls to the wall here order cancelled order filled

Bitcoin is rebounding for for order filled you can go to 100 can always

happen it's a stock any price can happen doesn't mean a will keep shorting keep shorting order filled

order filled order partially filled order filled order filled for

no volume I'm just selling retti ion Q short order partially filled order

filled short short short well when you short you're selling when you to get out of a short you don't sell it you buy it hope that clears it

up give up on Reddit yeah Reddit sucks order filled come on ever trade options

yep yep I've done that yep [Music] [Music]

Le it is I I'll check on that for you [Music] pull shorts at I don't understand 8 to

9: like talking about A.M

okay they only B $2 million of their own stock [Music] yeah I haven't been buying puts on any of these

stocks buying puts is tough because you got to get the timing right that's better for like biotech yeah I'm adding to retti the best I can I only have so much

margin inevitably we will see some pain order partially filled order filled order cancelled I'm long

calls as a hedge yeah SLS is going to go down I think okay they have gmv by quarter

here which I think they stopped [Music] giving give 12 month now or this this 12 month this might be 12 months yeah it's 12 months

yeah I'll do some teaching streams a lot of people have asked for that I can definitely do that order partially filled order

filled order filled yeah JavaScript is my best language Python's catching up though what's

Qin hell is this oh some weird Chinese thing I want to talk to some drop shippers that actually use this thing or

want to use try it for me yeah obviously when they report the results of their trial that didn't work that that'll be the Catalyst yes Chinese

KPMG yeah look at the inventories they don't have that many inventories this is a little little shady right here okay so they

have $132 million of inventories but they're somehow flipping that yeah that's funny Zach I believe

it looking at GCT this Chinese e-commerce thingy well I mean it's not a platform because they're saying that their their profits at least one of the Longs was here was

saying that their profits are coming from first-party sales so if it's first-party sales how the heck you how you doing

that most of the revenue they're they're calling product which is product they're buying and reselling but look at the inventories where's

inventories well product is all first party and they do break it down I must have the best inventory turns ever millions of chickens quick Qui

quick [Music] yeah yeah that's right it is hard I just think on

inventories most wholesalers they have huge inventories and I'm wondering if they're pulling a scam by

not valuing those correctly so they have to I mean we'll see how much they generate in cash flow I think the financials have to tell

us story that makes sense I don't think they're overvaluing their inventory well they could be they could

be hiding losses it's typically how you do do that ask me how I know you're probing 2022 earnings what the

heck why you going back in time yeah typically your inventories go up as size of your business goes up as good your accounts receivable so this is like

very very bizarre here take a look at this right so you don't have to be the world's best financial analyst to see this so accounts

receivable okay this is money your customers owe you okay so that went up a lot that makes sense it should go up with your with your Revenue

is now inventory also went up for no I get the I get the business model I mean the margins are low I mean this

is 18 to 21% margins it's not a heroic margin number that's a normal normal-ish distribution number so that's really not that bad it's not that low but it's not that

high either for a Chinese distributor that doesn't sound bad 13 to 21% I it's a little but they're they're like a specialty

distributor opportunistic like trading house like the old Japanese trading houses GCT yeah GCT it's on the should be on the bottom of the screen dollar

sign GCT do you see that the inventory turns is too high I just don't see how they can flip that much they sell their entire

inventory three or or four times a year GGA sus [Music] for inventory turns I really don't know

yeah when you take title to a c to product you you are taking the inventory that's pretty normal all Distributors do that and they

hold product risk unless they have the magic solution I guess in the Drop Shipping world like it's a very rapid purchase to

sale yeah I'd like to see if there are any drop shippers that I know that could do a little more research that's a good opportunity if it's

real very cheap four times earnings obviously the market doesn't trust it I haven't looked into it I I think

there's a um legislation stuff happening marol I don't know if I trust it I don't know well enough I I trust it more if they were doing bigger BuyBacks if they made 150

million and they don't need too much G to run they th they're throwing off cash flow