A short?

ARGN offers a compelling short opportunity because investors are incorrectly valuing the potential of ARGN’s R&D efforts and future product pipeline. ARGN has only one commercial product which is the CCS, using the most generous multiple possible, we estimate this business is worth $8 per share yet the stock trades at $18.20 which means that 56% of the market cap is attributed to ARGN’s product pipeline.

The short opportunity is that the technology in the pipeline is impractical and unlikely to be economically worthwhile. In addition, ARGN sells into the very challenging auto industry where their customers (OEMs) have a lot of power over suppliers and volumes are unlikely to see meaningful growth. Finally, ARGN is highly exposed to GM and Ford auto volumes and there has been heavy insider selling lately.