Giant Scam Alert! A Stock To Be Careful Around – On The Ball- Strategic Intelligence for Investors

Monkeying Around Investors

I haven’t wrote about stock shorts for sometime now and I think you’re all due to hear about a new one.

Company

Gorilla Technology Group, Inc. engages in the provision of video intelligence, Internet of Things (IoT) security, edge AI data analytics, and operational technology security solutions and services in Asia Pacific. It operates through the following segments: Video IoT, Security Convergence, and Other.

They work across Asia, the Middle East, Europe, and Latin America.

Recent MoUs (memorandums of understanding) indicate massive growth potential, including a $1.8B Thai electric-grid modernization project and a large smart government contract in Egypt. While MoUs aren’t finalized deals, they show strong business momentum on the surface. Other descriptions are far more lengthy and impressive yet.

Throughout you will find that Gorilla is a Nothing Burger. They are a fraudulent group of people full of empty promises enough to rob shareholders. The company will disappear in time

Gorilla Technology $GRRR.

Gorilla claims it derives a significant portion of its revenues from a select group of key clients, including government entities such as the Government of the Arab Republic of Egypt, the Criminal Investigation Bureau of Taiwan, and Taoyuan Airport. <<< Again very impressive.

Everything you’ll hear out of the “team” will focus on extremely impressive and cutting-edge claims–enough to rope in retail investors who don’t bother to do their due diligence. This is one reason why I have launched On The Ball–I do the research for you!

Membership Levels

It’s On Like Donkey Kong

For some reason, January 16^th, 2026 shows far more options (calls) purchased the last week about 9 dollars out of the money than other call option demand. Nothing inherently fraudulent about this…but it will be once you continue reading further.

Bullish option flow detected in Gorilla Technology Group Inc with 6,270 calls trading, 1.8x expected, and implied vol increasing almost 19 points to 109.68%. Aug-25 18 calls and 8/8 weekly 16.5 puts are the most active options, with total volume in those strikes near 2,800 contracts. The Put/Call Ratio is 0.35.

^Not illegal, but are they buying calls on lie promises to force the market to create some momentum?

Short sellers have been surrounding this since Gorilla’s roughly 1,200% stock price jump over six months, pointing to the hype around a series of deals.

Numbers

Gross Margin	48.86%
Operating Margin	27.85%
Pretax Margin	-88.53%
Net Margin	-86.77%
Return on Assets	-48.13%
Return on Equity	-101.83%

All Talk No Walk

Despite ambitious deployment plans, uncertainty continues to surround the revenue and margin forecasts with no evidence outlining how this transition can be made. The wide 2026 revenue guidance range of $137-200 million suggests execution risks, a lack of confidence from management and investors appear unconvinced the company can achieve growth expectations given the moderate P/S valuation relative to superior revenue outlook.

All of this is under the constant reminder upon future shareholders that they are inside of “a qualified pipeline over $10 billion across AI infrastructure and data centers”.

On The Ball writes about stock picks and macroeconomic news, I guess I have the untapped potential of billions, too.

Crypto-Like Hype

https://twitter.com/Kay_Y_Vibes/status/2023834135027196262?s=20

Whenever there is hype around a company that sounds like this…be careful.

Moral Barriers

Gorilla technology is an AI play on developing smart cities, dystopian police states, monitoring and censorship. It seems that the Taiwan has the right infrastructure and this is the direction of the United Kingdom. They have a P/S of 3, a P/B of 2, a forward P/E of 30… it’s a play that their tech (in so far as its real…) will be adopted and applied inward towards citizenry or for an smart city.

How many of you feel like you want to invest in a prison for your fellow man? I feel like there’s a moral line to not cross somewhere here.

All of the language used on all of their filings is grandiose at its core at https://gorilla-technology.com . It tries to tell a fantastic story without giving your the characters of that story and why they matter. They’ve mastered all the right tagwords for selling something this decade. Despite what they call themselves, looking a little further leaves you feeling quite empty:

Suspicious

They’ve had a lawsuit filed within 12 days of a research report against them for stating they have fraudulent accounting and fake products. Gorilla Technology Faced Investigation Over Promotional Misrepresentation and Questionable Strategy.

As part of this, it was discovered their HQ is essentially a small closet space above a nail salon in London. Some have alleged they’ve mislead earnings reports and done the same about the true number of their backlog orders for a number of years. To distract investors they try to push their partnership with Nvidia, who I believe is a giant scam itself (but that’s a separate point).

So far, they have announced:

$1.8B contract to sell “smart grid” and other “AI-powered” services to the Thailand Provincial Electricity Authority (PEA). Chandan (CEO) claimed this is a “signed contract” and includes a $180M prepayment.–Which never happened.
Also claims that there’s $6B in the pipeline and $2B of contracts to be signed but I can’t find evidence of either. I can’t even find what they do exactly to warrant any contract. They seem like a Crypto whitepaper, where there’s plans to conquer the world and take over Visa but there’s nothing even completed.
They’ve more than tripled their outstanding shares in just over 2 years.
There’s also a suspicious gap of 15 years of between incorporation and publishable activity (interestingly, Coreweave, who I call the partner in crime with Nvidia has done the same).
and more empty or misleading promises such as:

You’ll note that this reads “authorized capacity”–which doesn’t mean share buy backs per sé. Also the 1.4B only amounts to 300M which is done in phases–even though they only have 85M in backlogs/revenues and no end customer has been named publicly.

The exact details of Gorilla’s business and partnerships are a little fuzzy–what am I investing in?

I’ve noticed that the font color and size is different in places on their website and some words are capitalized that shouldn’t be (pet peeve of mine…but you’d think an AI focused company would not be making this mistake, right?).

It’s also strange to me that in their investor presentation it reads: “MOUs/PoCs that should add to revenue”. The “should add” seems to be improper language to me but if you do some searching it relates to an alleged $20-30M contract by the Royal Thai Police; it was $30,000 in reality.

A short seller research team named Culper Research tried to physically visit one of their offices in Seattle but it didn’t exist, it was simply a mailbox service–a billion dollars you say? Since, they’ve now changed their mailbox to this… https://x.com/fnoza_346/status/2003991427785925111?s=20 Does that look like a place manufacturing cutting edge AI?

More Research

Their 20-F form with the SEC seems abnormally long about their risks of operations: https://s3.amazonaws.com/sec.irpass.cc/2980/0001213900-25-037703.htm is this a legal ass cover?
More on their $6B in the pipeline… Gorilla defines its pipeline of potential contractsor other project engagements as comprising highly qualified leadsand realistic contract opportunities—potential customers who have shown interest in our offerings, including projects where we have submitted bids or are in active negotiations.

So this is who qualifies as a customer? Wow! I’m a billionaire too!
Loudeye Corporation, a separate company has been involved in several lawsuits, including a class action lawsuit regarding securities violations and a shareholder derivative action alleging breach of fiduciary duty by its directors. The securities class action Eli Rodriguez v. Loudeye Corp. et. al., focused on alleged false and misleading statements made by the company. Why am I talking about this?? Because this company is EXACTLY when the current CEO was working at Loudeye.
+ look at their board member’s prior position now: “…A former White House senior advisor to President Obama”… trustworthy guy you think?

It may be difficult to view… but this is the board. Here it says…

None of them own 5% or more
Only two of them (CEO at 1%) and a collection of 9 officers (totalling 1.6%) exceed 1% ownership of shares.
Three board members own NO shares; including the new Chief Financial Officer.

None of their partnerships list any specifics or details at all behind the deal. Now why wouldn’t they be heavily into their own company if they had such appealing statements?

Reddit Review

It’s not a good sign when the ideologically-driven Reddit crowd begins to question the solidity of the company:

It doesn’t help my growing nervousness that during a webinar posted on February of last year, the CEO had claimed that Gorilla is indeed negotiating with Amazon (separate from the ONE Amazon deal, alleged) on an opportunity, with more to be revealed within 4 weeks, but there hasn’t been any further announcements on this since then. Share buybacks were also mentioned around the same time but nothing has come of it.

Their Annual Filing likes to talk about who they are associated with…

The Gang

Their partnerships Global Edge, someone they claim to hold a partnership with is run by Renato Costa, described by GRRR CEO Chandan as “a close friend and partner.” He’s also been sued at least 43 times in Brazil for fraud, embezzlement, bad checks, and even misappropriating two rental cars.
$GRRR partner ONE Amazon was formed in Brazil with $17K USD. Its CEO Rodrigo Veloso ran two similar schemes: in 2020, ONE Comprador promised $1B for wastewater treatment. In 2017, ONE Natural Energy claimed to convert tires into power. Neither deal materialized.
The Former CFO of this company was the CFO of a Chinese company Lihua International ltd. where the CEO looted the company and hid debt from shareholders.

Ownership

30% shares are retail, 52% are free float, 10% are institutional.

Short interest is high; but is it worth it if this is a zero?

News

Gorilla is now all excited regarding its signed a memorandum of understanding to acquire UK-authorised AIFM Shackleton Finance, to be rebranded as Gorilla Technology Capital. The deal would create a regulated capital platform to support institutional investment in AI data centres, GPU-as-a-Service, quantum tech and cybersecurity. Again all of this had done its best to touch all the tag words.

Yet what they don’t advertise is that the entire deal is subject to a major regulatory condition. The completion is conditional on FCA change-of-control approval (a process of about 6-12 months).

StockTraders Daily

Finds a Weak Sentiment Across All Horizons Supports Short Bias.

Closing

I realize this post is all over the place… just like the share price. With 52-week low reaching 2 dollars and a 52-week high of 44 dollars…The volatility is intense. I think this company is a nothing burger at best and a giant criminal operation at worst.

When a company spends significant effort litigating critics and trying to appear in the media with carefully crafted notices instead of providing granular operational transparency, investors should question whether the narrative is stronger than the underlying business fundamentals.

If investors would pause for a moment to think about the reality of the company vs. its enormous “crypto-mania-like” promises–they’d see they’re being taken for a ride. Realistically, if multi-billion dollar contracts were imminent and high-margin, large equity dilution shouldn’t be less necessary and they’d at least have a matching office.

Crazily enough, I don’t know if I’d short this right now because I’m getting the sense that these people are professional criminals and they may be able to lie/scheme their existence a little longer, especially as markets continue into La-La-Land. If one had the time/capital to wait, I believe this company is not going to fall a little bit; I believe this is going to disappear from markets.

To me, it makes sense to allocate a small position of your overall short portfolio to this company because I believe it very well could go to zero; even minus the borrowing fees, you should be in for a great return if that’s the case.