- In a 4-page report (.pdf), Citron Research points out only 7.98% of Organovo's (ONVO -5.2%) shares are owned by institutions, and that the only sell-side firm providing coverage (JMP Securities) on the $819M company was a placement agent for a 4M-share offering. The firm declares it "cannot think of a stock with this high market cap and so little institutional ownership or analyst coverage."
- Citron also suggests Japanese boiler room operation Kanagawa Associates has helped prop up Organovo's shares, and notes Swedish regulators have issued a warning about unauthorized cold-calling by Kanagawa aimed at convincing individuals to invest in Organovo.
- Shares crashed in November after SA contributor Richard Pearson wrote a lengthy bearish column.
Organovo falls; Citron suggests boiler room propping up shares
Jan 21 2014, 12:01 ET