J Capital Research

Independent Insight Provider

J Capital Research, a U.S. company, publishes highly diligenced research reports on publicly traded companies, relying on deep, on-the-ground primary research. J Capital has particular expertise in the Chinese market, but we look at over-valued companies throughout the world. As an activist short- and long-research shop, when we form a clear view, we publish free, public reports to inform the investing public and never disguise our identity. We believe the internet has afforded an opportunity to small, unaffiliated investors to leapfrog the big banks, with their conflicts of interest, and obtain unbiased information on traded companies. We pride ourselves on our independence and the quality of our work. We hope the work speaks for itself.

Equity Bottom-Up

Advance Auto Parts, Inc. is a retailer of auto parts and accessories. The Company operates stores in various states, primarily  located in the northeastern, southeastern, and midwestern regions of the United States, and in Puerto Rico and the Virgin Islands.

<ul><li>Advance Auto Parts (AAP) continues to struggle even after two major restructuring programs.</li><li>For 2025, this seller of after-market auto parts has pulled out a save from liquidity constraints by raising cash, extending debt maturities, shedding assets, and streamlining operations.</li><li>But that brings AAP near to the bottom of its bag of tricks.</li></ul>

Advance Auto Parts (AAP) continues to struggle even after two major restructuring programs.For 2025, this seller of after-market auto parts has pulled out a save from liquidity constraints by raising cash, extending debt maturities, shedding assets, and streamlining operations.But that brings AAP near to the bottom of its bag of tricks.

Brookfield Business Corporation operates as a business services and industrial company. The Company focuses on owning and operating providers of essential products and services. Brookfield Business's operations are diversified across the industrial, infrastructure services, and business services sectors.

<ul><li>We believe a pending combination of Canadian and U.S.-listed sister corporations BBU and BBUC into a single new entity may be designed to absorb $1.5 bln in off-balance-sheet liabilities belonging to BBUC into a larger entity to brace for potential financial problems.</li><li>These off-balance-sheet “arrangements,” if they default, will probably not sink the newly formed company in the near term.</li><li>But the new company will still be weighed down with a substantial on-balance-sheet debt load. </li></ul>

We believe a pending combination of Canadian and U.S.-listed sister corporations BBU and BBUC into a single new entity may be designed to absorb $1.5 bln in off-balance-sheet liabilities belonging to BBUC into a larger entity to brace for potential financial problems.These off-balance-sheet “arrangements,” if they default, will probably not sink the newly formed company in the near term.But the new company will still be weighed down with a substantial on-balance-sheet debt load. 

Brookfield Business Corporation (BBUC): How the New Merger Plan Hides Problems

Geely Automobile Holdings Limited operates as a passenger vehicles manufacturing company. The Company provides passenger vehicles development, manufacturing, sales, and other services. Geely Automobile Holdings also exports passenger vehicles.

<ul><li>We believe that Geely Automobile, listed in Hong Kong as 0175, is a private equity fund first and an auto company second.</li><li>Expectations that Geely will become an international blockbuster akin to Toyota or Hyundai are misplaced.</li><li>Geely relied in 2024 for half its profit on mark-to-market value in subsidiaries.</li></ul>

We believe that Geely Automobile, listed in Hong Kong as 0175, is a private equity fund first and an auto company second.Expectations that Geely will become an international blockbuster akin to Toyota or Hyundai are misplaced.Geely relied in 2024 for half its profit on mark-to-market value in subsidiaries.

Geely Automobile Holdings Ltd (0175 HK): Why Geely Is Actually a Bank

CCC Intelligent Solutions Hold / Equity Bottom-Up

CCC Intelligent Solutions Holdings Inc. operates as a holding company. The Company, through its subsidiaries, provides cloud-based SaaS platform of digital and data services for the insurance and automotive industries. CCC Intelligent Solutions Holdings serves customers worldwide.

<ul>
<li>We made a major mistake in our last newsletter, on CCCS. The big story in insider sales is the exit of private equity owner Advent International, not share sales by directors.</li>
<li>Those sales exist, but in much smaller number than we reported.</li>
<li>We remain concerned about the exit of directors, and we stand by our thesis that the stock is over-valued.</li>
</ul>


We made a major mistake in our last newsletter, on CCCS. The big story in insider sales is the exit of private equity owner Advent International, not share sales by directors.
Those sales exist, but in much smaller number than we reported.
We remain concerned about the exit of directors, and we stand by our thesis that the stock is over-valued.


Correction: CCC Intelligent Solutions (CCCS)

<ul><li>CCC Intelligent Solutions Holdings Inc. (CCCS) is a low-growth software business from which executives are raking as much value as possible before they depart.</li><li>Apparently understanding that there is little growth left in the core business of assessing auto-insurance claims, CCCS recently borrowed heavily to buy a tangentially related, loss-making company for around 15x revenue, or $665.6 mln net of cash acquired, then said on a call that the acquisition is “immaterial.”</li><li>The reality is a slow-growth company whose aggressive practices in low-balling insurance assessments are straining customer relationships with their insurers.</li></ul>

CCC Intelligent Solutions Holdings Inc. (CCCS) is a low-growth software business from which executives are raking as much value as possible before they depart.Apparently understanding that there is little growth left in the core business of assessing auto-insurance claims, CCCS recently borrowed heavily to buy a tangentially related, loss-making company for around 15x revenue, or $665.6 mln net of cash acquired, then said on a call that the acquisition is “immaterial.”The reality is a slow-growth company whose aggressive practices in low-balling insurance assessments are straining customer relationships with their insurers.

Independent Insight Provider, J Capital Research

Be warned. We are activists. We are biased.
We do our best to find and present facts, based on extensive primary research and using public sources.
​But we will profit if these stocks decline or, when we are long, rise in value.
We do not offer advice on how anyone else should trade a stock. We present our views.

J Capital Research
Independent Insight Provider
• J Capital Research

Advance Auto Parts (AAP): Out of Gas

Advance Auto Parts (AAP) continues to struggle even after two major restructuring programs. For 2025, this seller of after-market auto parts has...

J Capital Research

Brookfield Business Corporation (BBUC): How the New Merger Plan Hides Problems

We believe a pending combination of Canadian and U.S.-listed sister corporations BBU and BBUC into a single new entity may be designed to absorb...

J Capital Research

Geely Automobile Holdings Ltd (0175 HK): Why Geely Is Actually a Bank

We believe that Geely Automobile, listed in Hong Kong as 0175, is a private equity fund first and an auto company second.

J Capital Research

Correction: CCC Intelligent Solutions (CCCS)

We made a major mistake in our last newsletter, on CCCS. The big story in insider sales is the exit of private equity owner Advent International,...

J Capital Research

The Equity Dispatch #52: Honey Pot

CCC Intelligent Solutions Holdings Inc. (CCCS) is a low-growth software business from which executives are raking as much value as possible before...

J Capital Research