Airport scanner maker's stock tumbles after analyst trashes it – New York Post

OSI Systems, the maker of airport scanning systems, lost nearly a third of its value on Wednesday after short-seller Carson Block accused it of underhanded practices.

“We think this company is rotten to the core,” Block’s firm, Muddy Waters, said in a 19-page report, which was accompanied by a 10-minute video.

A potential $250 million contract OSI signed with Albania was likely obtained through a bribe, Muddy Waters claimed, citing the firm’s research and speculation in local media reports.

The short-selling firm also raised questions about a contract OSI has in Mexico, claiming it was “substantially overpriced and oversold in terms of capabilities.”

Late Wednesday, the company, based in Hawthorne, Calif., denied any wrongdoing.

“Our turnkey security inspection programs in Mexico and in Albania were the result of public tenders,” OSI said in a statement. It said it “would not customarily respond to misleading allegations from short sellers, [but] this particular report has had an undue impact in the public sphere and warrants a response.”

OSI shares fell 29.2 percent, to $59.52. Prior to Wednesday’s drop, the stock was up 10.4 percent for the year.

Filed in: Analyst Coverage Tags: 

You might like:

Nvidia (NVDA) Stock: Analyst Encourages Investors to Keep Waiting for Lower Entry Point – Smarter Analyst Nvidia (NVDA) Stock: Analyst Encourages Investors to Keep Waiting for Lower Entry Point – Smarter Analyst
Top Analyst Dials Down Price Target on Alibaba (BABA) Stock on Back of Greater Macro Uncertainty – Smarter Analyst Top Analyst Dials Down Price Target on Alibaba (BABA) Stock on Back of Greater Macro Uncertainty – Smarter Analyst
Don’t Expect These Earnings to Save Facebook (FB) Stock; Top Analyst Weighs In – Smarter Analyst Don’t Expect These Earnings to Save Facebook (FB) Stock; Top Analyst Weighs In – Smarter Analyst
The More Amazon (AMZN) Stock Falls, the Better It Looks; Top Analyst Weighs In – Smarter Analyst The More Amazon (AMZN) Stock Falls, the Better It Looks; Top Analyst Weighs In – Smarter Analyst
Week 82: Far from Winding Down, Mueller's Probe Feels Energized – Politico Week 82: Far from Winding Down, Mueller's Probe Feels Energized – Politico
Graco (GGG) Raises Quarterly Dividend 20.8% to $0.16; Approves 18M Share Buyback – StreetInsider.com Graco (GGG) Raises Quarterly Dividend 20.8% to $0.16; Approves 18M Share Buyback – StreetInsider.com
Amarin (AMRN) Stock: Ignore the Headline Noise, Says Analyst – Smarter Analyst Amarin (AMRN) Stock: Ignore the Headline Noise, Says Analyst – Smarter Analyst
Top Analyst Pulls Back Price Target on Alibaba (BABA) Stock Ahead of Earnings – Smarter Analyst Top Analyst Pulls Back Price Target on Alibaba (BABA) Stock Ahead of Earnings – Smarter Analyst

Leave a Reply

Submit Comment
© 2018 Stock Investors News. All rights reserved. XHTML / CSS Valid.