Submitted by @QTRResearch
Just three days after MDXG held a conference call in which executives tried to paint a rosy picture of the future of the business, it was announced reported on by Bloomberg that the company was being investigated by the United States Department of Justice for its sales to government and its revenue recognition.
The stock swiftly sold off from near $7.70 per share to as low as $6.48 before paring some of its losses and now settling around the $7 level.
The company has denied any wrongdoing and denies knowledge of an investigation.
On, Friday, in addition to the company conducting its own conference call, short seller Marc Cohodes held a Periscope (live video) session, showing off what appeared to be voluminous amounts of evidence of various types of wrongdoing that he said he had provided to regulators.
One of the specific allegations pointed out in the article concerns the companies sales to government entities as well as its revenue recognition, two major points of contention by short-sellers, Marc Cohodes and Viceroy Research, who have spearheaded the campaign of criticism against the company, and who weighed in after the news was released.
We weighed in on MDXG’s conference call on Friday in our podcast, predicting the stock would move lower to settle between $5 and $7
via Zero Hedge http://ift.tt/2HOPrek Tyler Durden