New Ask Claude or ChatGPT about any stock, using Bullpen. Bullpen in Claude or ChatGPT. 7 days free
Bullpen.News From Edwin Dorsey
Get Daily Recap Feedback

Tuesday, November 10, 2026

Back to the front page

From X

@StableBread

Fajasy on X

Quantum $QMCO, which restated its financials in May 2024 and again in August 2025, just filed a September-quarter 10-Q that no longer says when it’ll fix the gaps in its accounting controls, including one it expected to fix by September 30. $QMCO’s disclosure controls are still “not effective” because of material weaknesses (the most serious kind of gap in a company’s financial reporting controls) that “remain unremediated as of September 30, 2026.” The weaknesses cover revenue recognition, inventories, income taxes, and the control environment, which the June-quarter 10-Q described as too few qualified staff and too little monitoring. $QMCO said in that June-quarter 10-Q, filed August 11, that it expected to automate the dates on the schedules that set when service revenue is recognized “by the end of our second fiscal quarter,” which ended September 30. The September-quarter 10-Q only says $QMCO “continued to implement” controls over those schedules, without saying whether the automation is in place. Nor does it repeat the June-quarter 10-Q’s other target dates: December 31, 2026 for inventory controls, and March 31, 2027 for sales order entry and income taxes. During the quarter, $QMCO hired a chief accounting officer and a director of tax, and engaged an outside consulting firm to help design the fixes. Management still concluded that the financial statements “fairly present in all material respects” $QMCO’s results. In my October 28 update, I said I’d first watch whether this 10-Q arrived on time, left past quarters unrestated, and showed the service revenue fix $QMCO targeted for the September quarter. There was no late filing or restatement, which I said may push the multiple toward my bear case’s 1.2x, but the 10-Q doesn’t show the fix. So I’d rather see the December-quarter 10-Q, due February 9, 2027, confirm the service revenue fix and give new dates for the rest before taking $QMCO at its word on its controls.
@StableBread

Fajasy on X

Root $ROOT, the car insurer that prices drivers on how they actually drive, closed Friday at $43.37/share, down 24.1% in two days from $57.15 before its Q3 report, even though it earned $14.4M against a $5.4M loss a year ago. In my August 10 update, I said $ROOT was riding out the soft market (when large carriers cut prices and spend heavily to win customers) by protecting margins instead of buying growth, and Q3 showed exactly that trade-off. Premiums in force (the annualized premium on every active policy) fell 5.4% y/y, nearly double Q2’s 2.8% drop. Growth in policies offset the lower premium per policy through Q1, but policies were flat from June at 484,037 (+3.8% y/y) while premium per policy fell 8.9% to $1,441. Basically, this means that $ROOT’s customers are paying less on average, and Root’s customer count has barely moved since June, so the total it collects from customers each year is shrinking (down 5.4% from a year earlier, to $1.40B). CEO Alex Timm said larger carriers raised marketing and cut prices during the quarter, so $ROOT gave up direct-channel growth where returns fell below its targets. CFO Megan Binkley expects year-end policies in force to be “broadly in line with the third quarter.” But new business through partners and independent agents still rose 19% y/y and made up 52% of the total, up from 44% a year earlier. The quarter’s big partnership win was Carvana $CVNA, the online used-car seller, which renewed its embedded insurance deal (coverage sold with the car) on August 31. Timm said the program had sold “well over 250,000 policies” by then. Carvana’s new warrants for up to ~1.5M shares (~10% of the share count) vest on policy milestones through August 2028, so it only earns them by selling more Root policies. In October, $ROOT also launched a pilot with Hyundai, one of its existing partners. At 14 Phoenix-area dealerships, buyers who finance or lease a new Hyundai through Hyundai Capital America get six months of Root insurance free if they enroll and qualify. The pilot puts $ROOT in front of car buyers at the dealership, the way Carvana does online.

Investor Letters

All letters

The AutoNation Story

AutoNation shed rentals and megastores, focused on dealerships, and retired 91.1% of its shares through buybacks after its 1990s roll-up…

AN $6.1B
Cannibal Stocks 1 click

The 10-Q Fills In the Buyback

Empire State Realty Trust bought $86.1 million of stock through November 6, while corrected sum-of-the-parts values range from $9.12 to…

ESRT $1.3B
Orphan REITs 1 click

No title

SpaceX’s $24 billion Starbase power plant, Microsoft’s Oracle capacity cuts, Riot’s $72 billion AI lease and Quanta’s sell-off frame…

PWR $77BRIOT $5.8B
Monte Independent Investment Research 1 click

Insider activity October 2026

Asian insider buying reached $2.9 billion in October, the highest since 2018, with South Korea and Thailand leading.

BKRKY $23B
Asian Century Stocks 1 click

Apple and a Hacker’s Future

Apple’s walled garden feels limiting as AI increases the value of open systems and hacker-friendly tools.

AAPL $5T
Stratechery by Ben Thompson – On the business, strategy, and impact of technology.

British American Tobacco: Harvest

British American Tobacco’s U.S. reset revives combustibles and rebuilds its nicotine-pouch portfolio after legacy-brand writedowns and Velo…

BTI $138B
Invariant 6 clicks

Practical Parametric Yield

Cerebras’s WSE-3 faces parametric-yield constraints that could restrict supply, making power and clock-speed tradeoffs central to its next…

CBRS $20B
Irrational Analysis 3 clicks

Publications we follow

Every publication on this site, hand-picked.

129 publications

Newsletters 109

YouTube 4

Blogs 15

Seeking Alpha 79 of 281

Nominate a publication

X accounts we follow

Every account on this site, hand-picked.

91 accounts
Nominate an account

Investor letters we follow

360 firms

Sectors

Ordered by how often our editor reaches for them.