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Red Flag on GENK → Closing Position
Misleading facts aren’t usually something that gets brought to our attention when we do our research but luckily for us, we were notified by @realLigerCub about some questionable historical facts, or lack thereof, for GENK’s historical unit volume, and then some.
We’ve been through this rodeo before with Xponential Fitness (XPOF) and how they lied (or misled) about certain box numbers which led to a historic downfall after peaking in 2023. Luckily, we got out near the top and didn’t endure the drawdown but this has the markings of the same situation which we will not be going down for the ride more than we already have.
Up to you all whether or not this is meaningful in your opinion but for us, trust is important with management and without that, what’s the point? Below we’ll highlight the issues brought to our attention and why we’ve decided to close the position immediately.
As part of our last full update on GENK, we shared the below image with you all as of November 23, 2024.
I want you to pay attention to the RHS where it says “28” and when that last location was opened (October 2019). This is going to be important to follow along with why that has led us to close the position.
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