Short Seller Muddy Waters Ends Busy Year With NMC Share Plunge - Bloomberg:
Short seller Carson Block has had mixed results in 2019, but he’s ending the year with a bang.
Shares of NMC Health Plc, the Middle Eastern hospital operator that’s Block’s latest target, have slumped 33% since his Muddy Waters Capital LLC said Dec. 17 that the company is understating its debt and overstating its cash. NMC Health denied wrongdoing, said it would hire an accounting firm for a review and would pursue regulatory action against third parties that have tried to manipulate the share price.
The bet has been one of his most successful this year. Block, who made his name shorting Chinese shares, has targeted seven companies in 2019. That’s the most in the almost 10 years he’s been in the business, based on his publicly disclosed positions. While four of the stocks are down, two targets in Asia and one in Germany recovered from initial losses.
With equity markets at records, Muddy Waters is finding “more large, liquid problematic companies than before, but at the same time, increasing levels of investor apathy,” Block said by email.
Short seller Carson Block has had mixed results in 2019, but he’s ending the year with a bang.
Shares of NMC Health Plc, the Middle Eastern hospital operator that’s Block’s latest target, have slumped 33% since his Muddy Waters Capital LLC said Dec. 17 that the company is understating its debt and overstating its cash. NMC Health denied wrongdoing, said it would hire an accounting firm for a review and would pursue regulatory action against third parties that have tried to manipulate the share price.
The bet has been one of his most successful this year. Block, who made his name shorting Chinese shares, has targeted seven companies in 2019. That’s the most in the almost 10 years he’s been in the business, based on his publicly disclosed positions. While four of the stocks are down, two targets in Asia and one in Germany recovered from initial losses.
With equity markets at records, Muddy Waters is finding “more large, liquid problematic companies than before, but at the same time, increasing levels of investor apathy,” Block said by email.
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