In response to being on the receiving end of a short-seller report, Apyx Medical (NASDAQ:APYX), a medical device company focused on cosmetic surgery, saw its shares drop 25% as of the market close on Thursday.
White Diamond Research, an investment consulting firm, published a bearish report about Apyx Medical.
As you'd expect, the report makes a number of claims about the company's business practices, products, and management team that are less than flattering.
The short-seller went so far as to claim that shares are currently worth about $3 each. That price implied 65% downside from prices at the time of publication.
Traders mauled the company's stock in response.
White Diamond Research had already shorted Apyx Medical before the publication of the report, so it made a tidy profit on its position. That doesn't mean that its research is wrong or shouldn't be taken seriously, but it does mean that it had a financial incentive to see Apyx's stock fall hard. Investors should keep that in mind as they read through the report.
If you're bullish or bearish on Apyx's stock, then it is worthwhile to read through the article and judge for yourself whether or not you agree with the author's conclusion.
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