ShareSleuth.com Report Sends UTEK Corp. Shares Down 36%

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Web upstart causes Utek plunge [St. Petersberg Times]

Summary: A scathing in-depth report on Billionare Marc Cuban's (pictured) upstart website dealt technology transfer company UTEK Corp. a tough blow yesterday as it sent shares tumbling 36%. The purpose of Cuban's site is to expose false or shady financial reporting among publicly-traded companies; he makes no secret of the fact that he shorts shares prior to making the reports public. In this case, Cuban shorted 75,000 shares of UTEK at around $20; shares closed at $12.15 yesterday meaning Cuban stands to have made a hefty 1-day profit of just under $600,000 had he closed out his entire short position. Among the charges leveled against UTEK in the ShareSleuth piece: "the stated values of the stock that Utek received through its technology deals with numerous small companies should be examined closely" since these represent a large portion of its total revenue, as should the company's financial reports. ShareSleuth's last report also had devastating effects - shares of Xethanol dropped nearly 30% following its appearance.
Related links: ShareSleuth.com Article on UTEK Corp. • Sharesleuth's Recent Report Aside, Xethanol was Definitely Overpriced • Xethanol Shares Plummet After Sharesleuth.com Story Appears: Coincidence?
Potentially impacted stocks and ETFs: UTEK Corp. (UTK)

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