Bedrock AI is software that uses AI to read SEC filings and predict stock price collapse.
Bedrock AI predicted a collapse at CANO Health as early as August 16, 2021, which was when the Company filed its first Form 10-Q after becoming public via SPAC merger. At this time, the company’s risk score, as determined by our algorithms, was 76 (high risk).
Since August 16, 2021, $CANO's stock price decreased from over $10 to now only $1.43 (as of December 9, 2022).
This is a stock price decrease of over 80%. For context, the S&P 500 had only gone down 12% during this same timeframe.
In addition to $CANO’s high Bedrock AI Risk Score, we also flagged multiple red flags at the company to our subscribers. Never miss red flags like these again, sign up for a trial https://www.bedrock-ai.com/contact-us.
Bedrock's algorithms identified qualitative red flags at $CANO in 2021, including:
Internal controls red flags:
In its Q2 2021 Form 10-Q, $CANO disclosed that it had material control weaknesses related to failure to establish effective controls relating to its financial statement close process and its accounting for business combinations.
It was later disclosed that its auditors identified material control weaknesses as well.
Legal and regulatory red flags:
$CANO disclosed that in May 2020, $CANO received a subpoena from the US Department of Justice, seeking records relating to its prescriptions of hydroxychloroquine during the early days of the COVID-19 pandemic.
Related party red flags:
The company had paid millions of dollars for related party construction costs. Related parties are people and organizations that are affiliated with the company. An example of a related party could be another company that the CEO owns. Millions of dollars worth of related party transactions should be viewed with skepticism as they are between non-independent parties and may be an act of self-dealing.
A few of our algorithmic red flags from 2021 (as shown from Bedrock AI's Dashboard):
Our Bedrock team also highlighted red flags at $CANO earlier in 2022 on Twitter relating to an accounting restatement: