Jan.22, 2014
On January 21, Citron Research issued a cautious report on Organovo Holdings. In its 4-page report, Citron Research points out only 7.98% of Organovo's shares are owned by institutions, and the only firm that covers the $819M company who was a placement agent for 4 million shares with insider selling. Citron declares it "cannot think of a stock with this high market cap and so little institutional ownership or analyst coverage."
"At the present moment, Organovo (NYSEMKT:ONVO) is a money-losing highly speculative biotech company which has been swept up in the mania for 3D printing stocks. Organovo Holdings Inc (NYSE: ONVO) has been spinning a story that its technology would allow the "bio-printing" of replacement organs." writes Citron.
Citron also tells that Japanese boiler room operation Kanagawa Associates has helped promoting Organovo's shares and on January 7, 2014, the Swedish Financial Supervisory Authority issued a warning specifically about Kanagawa Associates unauthorized cold-calling on ONVO stock into Sweden.
Citron says buyers have to be especially on guard. "So if the institutional ownership of this name is near zero, and there's no sell-side analyst coverage, "Who is Buying this S%!& ?" writes Citron.
Organovo responded to Tuesday's report from Citron Research:
"Through investor inquiries, Organovo became aware of a potential problem with Kanagawa Associates representations of selling Organovo stock at a discount in October 2013. When we received inquiries we explained that we had no relationship with Kanagawa and that our stock was instead publicly traded through licensed broker/dealers. We believe that as a result of our expressed concerns and those of investors, several regulatory agencies including those in Japan and Scandinavia successfully posted warnings about Kanagawa in the territories they were operating, which to our knowledge did not include the United States. To the Company's knowledge, Kanagawa never actually sold shares to any investors, but is alleged instead to have simply accepted wired funds and not returned them. Organovo is unaware of how any such activity taking place outside the equity markets and not involving a broker/dealer who could actually sell shares can be hypothesized to impact the trading price of a NYSE MKT stock that has trading volume of over $60M a day. We sincerely hope that anyone promoting such a hypothesis has an ability to quickly formulate new hypotheses."
Citron Research's Andrew Left confirmed in an interview on CNBC that he is short shares of Organovo.
Shares of Organovo closed the session down $1.05, or 9.42%, to $10.10.
In the video below, Andrew Left explains an urgent short and trading warning on Organovo's stock.
Posted in 3D Printing Company
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that dude is living in the past, ONVO is going to change the world
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