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Textura slips, Citron issues second salvo citing "fraudulent disclosures," opex issues

Jan. 07, 2014 11:07 AM ETTextura Corp. (TXTR) StockTXTRBy: 2, SA News Editor5 Comments
  • Textura (TXTR -2.8%) shares slip in response to part 2 of a Citron series that places a "generous $4 target" on the stock.
  • The new piece makes a number of allegations of  "fraudulent disclosures" relating to CEO Patrick Allin's past.
  • Part 2 goes on to lambast William Blair, Credit Suisse, and Barrington Research, all firms who came to Textura's defense following the original Citron report.
  • Regarding fundamentals, Citron postulates that to break even, Textura would "have to grow their revenue to 246% of 2013 revenue levels, while not increasing any expenses." Meanwhile, Textura's expenses in 2013 are "now [at] the levels the analysts expected them to spend, not in 2014, but in 2015."
  • Left calls Textura a "pretender in the SaaS space," with indiscernible organic growth, misleading market penetration statistics, negative leverage, and a string of poor acquisitions that amount to P/S arbitrage.

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