- SPI Energy (SPI, -6.9%) is falling after short-seller Grizzly Research issued a short report that accuses the company of pumping the stock on hot trends and then failing to achieve.
- "We believe SPI is an egregious pump and dump company," Grizzly writes. "The company’s stock has had a date with almost all the hottest trends in the recent two years, including Cryptocurrency, CBD, and now Electric Vehicles."
- "The stock tells a repetitive story of pumping the stock on news of hot strategic establishment, followed by aggressive PR campaigns and ultimately a failing value proposition."
- The stock made headlines after the company announced an EV subsidiary and shares rocketed to nearly $47 from $1 in one session, before falling back.
- "We identified that the CEO of SPI is a wanted fugitive in China," Grizzly writes. "He has also been involved in another public company that went bankrupt prior to joining SPI."
- "With a negative book value of equity, we believe the stock will at best return to previous levels, at worst quickly become another one of the CEO’s bankrupt companies."
- Shares are still up more than 1,000% in the last six months.
- The short interest in the stock is 11.8% of the float, according to Bloomberg.