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Why Nano-X Imaging Stock Just Crashed Another 14%

By Rich Smith – Updated Sep 17, 2020 at 11:59AM

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Two analysts now consider Nano-X to be just "Theranos 2.0."

What happened

Things are coming apart in a hurry for recent IPO and would-be medical device-making wunderkind Nano-X Imaging (NNOX -2.19%).

From IPO to last week's closing price, Nano-X shares soared 250%, but the stock got savaged by a short report earlier this week, and today it's getting hit again -- down 14.1% as of 11:14 a.m. EDT.

Stock arrow climbs up and then goes back down and crashes into the floor.

Image source: Getty Images.

So what

So what's going wrong for Nano-X this time?

It was noted short-seller Citron Research that labeled Nano-X "a stock promotion" and a likely $0 stock on Tuesday, but today, others are starting to glom on.

In particular, this morning Empire Financial Research's Whitney Tilson published a terse report agreeing with Citron that Nano-X looks like "Theranos 2.0." Although Tilson added no new detail to what Citron had already published, he did throw his reputation behind the short-seller, concluding that after reading the report, "there's no doubt in my mind that [Citron is] correct... and that this stock is worthless."  

Now what

Is one analyst agreeing with another analyst the best reason for investors to subtract another 14% from Nano-X's stock market value?

Maybe not. But in the absence of any more effective rebuttal to Citron than the weak sauce Nano-X dished out yesterday, it appears even a mere "I concur" against Nano-X is enough to take this stock down today.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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