It was another quiet day at index level on Wall Street. There were no major movements one way or the other. This is how the exchange day ended:
- The S&P 500 rose 0.23 percent.
- The Nasdaq Composite rose 0.36 percent.
- The Dow Jones rose 0.03 percent.
Halved in one day
Under the hood of the index, individual stocks were seen to undergo large movements.
Tingo Group, which provides financial technology and agricultural financial technology in Africa, Southeast Asia and the Middle East, tumbled on the Nasdaq after being butchered in a new report by short-selling and research firm Hindenburg Research.
Hindenburg Research is best known for sinking the share prices of huge Indian conglomerate Adani Group and hydrogen truck maker Nikola after publishing scathing reports alleging fraud. The companies have disputed the charges.
Before the reports are published, Hindenburg has built up short positions in the companies with the aim of making money from falling share prices.
Tingo Group shares fell around 50 percent on Tuesday.
– We are short Tingo Group because we believe the company is an exceptionally obvious fraud with completely fabricated accounting figures, writes Hindenburg in a report on Tuesday.
I think it’s a hoax
The analysis company believes it has found several red flags related to the founder’s background, including a fabricated CV.
Furthermore, reference is made, among other things, to a major launch of a food processing plant in Nigeria with billions in investments, in which the country’s minister of agriculture participated. Hindenburg believes he has found out that the facility shown in the investor material is actually an archive photo of an oil refinery. The analysis company has also visited the construction site and found no signs of what the company described as significant progress in the construction process, according to the report.
Hinderburg also chastises the accounting practices, and points out that in February the fintech company bought Tingo Foods from the founder “Dozy” Mmobuosi for 204 million dollars. The price roughly corresponded to the cost price for Tingo Foods’ inventory. The stock should have been entered in the annual accounts, but not in the first quarter figures, according to Hindenburg.
– Our experience indicates that 204 million dollars in inventory does not just disappear from companies with internal controls and real financial reporting, writes the research company.
This spring, the Tingo Group share multiplied in a short time, but since the peak in mid-May, the share price has collapsed.
DN has not yet succeeded in getting a comment from Tingo Group.
Crypto exchanges plunged
The Coinbase share fell 12 percent after the US financial regulator Securities and Exchange Commission (SEC) has notified a lawsuit against the crypto exchange.
It has been less than a day since a similar message came that the SEC would go after the world’s largest crypto exchange Binance for market manipulation and conflicts of interest. In Coinbase’s case too, there is talk of a violation of the Securities Act.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with written permission or as permitted by law. For further terms see here.
2023-06-06 16:41:15
#Fintech #company #crashed #Hindenburg #report
