Muddy Waters Shorts eHealth Inc
Carson Block's Muddy Waters announced a short position in eHealth Inc. today, a private online marketplace for health insurance.
"EHTH’s highly aggressive accounting masks what we believe is a significantly unprofitable business," says Muddy Water's announcement. MW's analysis revised eHealth's 2019 revenue downwards by 25% ($128mn) and 2019 operating profit down by $263mn to show a loss of -$181mn and says that insiders have sold $34.9mn worth of shares since the beginning of 2019.
"...the stock has ripped on the back of fantasy revenue and earnings" conlcudes muddy Waters. "...we wonder how long management can keep this charade up – particularly when consistently burning cash."
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