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Twist Bioscience Gets Stung by Short Report

November 21. 2022. 8 mins read

Someone once said it’s easier to fool people than convince them they’ve been fooled. For those who invest with conviction, nothing damages one’s pride more than accusations of being conned. Investors must be wary of letting such emotions get in the way of objectivity. Anyone who dismisses an entire short report as biased one-sided tripe that’s solely meant for manipulation isn’t a good investor. Short reports always contain something interesting worth noting, but they need to be taken with a grain of salt as well. Interpreting a short report is a fine balancing act that needs to end with a statement of conviction.

Once Bitten, Twice Shy

Scorpion Capital first came into our lives a year ago when we published our piece on Why We’re Selling Berkeley Lights Stock which largely stemmed from confirmations – and lots of new information – presented in their short report. Just because BLI shares fell 89% since we sold our position doesn’t mean we did the right thing, but evidence seems to suggest there were indeed problems. Earlier this year, the CEO was demoted with no succession plan, something that implies he was forced out. The company missed their revenue guidance as Scorpion predicted, and this year they “expect full-year 2022 revenue to be approximately in line with 2021 full-year revenue.” So, the growth tailed off just as Scorpion predicted, and now the company has a new operating strategy, and they’re confident in the turnaround plan.

We are well on our way to transforming Berkeley Lights from a technology platform company into a growing, profitable, and sustainable life sciences tools and services company.

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