Short-seller Ottoman Bay Research issues another report accusing Mindray Medical's management of misleading investors.
Short-seller Ottoman Bay Research took another shot at Mindray Medical (NYSE:MR) this week, taking issue with the Chinese medical device company's response to Ottoman's initial accusations of fraud and mismanagement.
MR shares lost 11% Dec. 12 after Ottoman Bay Research issued a report accusing Mindray of overstating its revenues and gross margins, making a string of questionable acquisitions and of claiming to have "phantom" facilities that don't exist. Mindray denied the some but not all of the charges, sending share prices back up but also drawing another riposte from Ottoman Bay.
"For management to believe it is acceptable to 'pick and choose' points to refute is clearly a disservice to the company's shareholders. Mindray's claim that 'The company does not intend to enter into an item-by-item refutation of the false statements and errors of facts' should be worrisome to investors. If Mindray can substantiate that our claims are false, they should be very easy to disprove," according to the latest Ottoman report, which levies additional accusations based on a Dec. 13 Mindray conference call with analysts.