Organovo falls; Citron suggests boiler room propping up shares

|About: Organovo Holdings, Inc. (ONVO)|By:, SA News Editor

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.