Sahm Andrangi’s Kerrisdale Capital issues a negative report on QuinStreet

Kerrisdale Capital has launched a complaint about QuinStreet’s black hat affiliate marketing tactics. In the report, Kerrisdale states that the latter company has been using affiliate websites to generate revenue when people click the website and fill out the form. This is a process which is happening at the expense of their clients. It seems that all the revenue QuinStreet has been earning in the recent past has come from a single client. Kerrisdale adds that QuinStreet is a low-quality organization which is doing little to nothing to earn revenue through honest means.

 

The stock price of QuinStreet has more than tripled in the recent past as a result of the suspicious activity, says Sahm Adrangi. Some people thought that the company was finally moving in the right direction after staying in bad books for a long time, but it seems as if the company is using underhand methods to achieve this success. Kerrisdale adds that the credibility of the internet marketing company, which is listed on NASDAQ as QNST, is at stake because it has been benefiting from sham website traffic.

 

Sahm Adrangi adds that QuinStreet is not a genuine company when it comes to lead generation, mainly because they use a mix of malware redirects, and low-quality leads from internet users trying to earn a few Swagbucks. The main question that Sahm Adrangi poses about QuinStreet is why their leads seem to be generated from sites that deal with adware, paid surveys and one person that lives in China’s Hunan province. He adds that there is more to this company’s internet marketing tactics than meets the eyes.

 

The success of the company has been experiencing is a little strange, especially because they have little to no product differentiation with other companies in their line of work. The CEO and CFO have started selling their shares in the company, which indicates that the company is headed to a dead-end, and not a successful future of any kind.

 

Sahm Adrangi is the founder and Chief Investment Officer at Kerrisdale Capital Management. He has been with the company since its inception in 2009. He is a holder of Bachelor of Arts in Economics from Yale University.

 

http://fortune.com/2016/04/21/sahm-adrangi-kerrisdale-short-sale/