Why Blue Orca's Aandahl Is Shorting GDS Capital

The video discusses a thesis on GDS stock, highlighting investigations into the company's data center utilization claims and acquisitions. It alleges that GDS overstates utilization rates and involves insiders in acquisitions, inflating their value. The company's financial health is questioned due to high debt and interest costs. Despite market confidence, the video suggests the growth is illusory. It compares GDS with other companies like 21 Vianet, suggesting a lower valuation due to governance concerns.

What are the implications of the insider dealings mentioned in the investigation?

What lessons can investors learn from the past regarding due diligence in the context of Chinese companies?

In your opinion, what could be done to improve the corporate governance concerns at GDS?