Fuzzy Panda alleged that the company’s claim that it aims to power AI data centers using aging gas wells is implausible and financially unsound.
- The short seller added that the company’s CEO E. Will Gray II has a more than 20-year history of leading penny stock companies into collapse.
- Fuzzy Panda said NUAI spent 2.5 times more on stock promotion than on operating its 40-year-old gas wells.
Short seller Fuzzy Panda announced Friday it is short on New Era Energy & Digital (NUAI), citing concerns over its operations and management.
New Era Energy declined almost 4% on Friday morning but pared some of its losses. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘normal’ message volume levels.
Red Flags On Management and Operations
Fuzzy Panda alleged that the company’s claim that it aims to power AI data centers using aging gas wells is implausible and financially unsound.
The short seller added that the company’s CEO E. Will Gray II has a more than 20-year history of leading penny stock companies into collapse, often relying on paid stock promotions rather than sustainable business strategies.
“We are short NUAI because we believe it is Gray’s next flameout.”
-Fuzzy Panda
Fuzzy Panda said NUAI spent 2.5 times more on stock promotion than on operating its 40-year-old gas wells. Third-party analyses indicate these wells produce only about 5% of the output needed to support the company’s ambitious AI data center claims.
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