Blue Orca Capital Shorts Samsonite
Texas-based short seller Blue Orca Capital, launched last week by Soren Aandahl, previously of Glaucus Research Group, announced a short position in Samsonite this morning, claiming the firm "is a mid-level brand masquerading as a premium luxury player."
In a note, the firm said:
"We suspect that Samsonite has concealed slowing growth through debt fueled acquisitions and that it has massaged earnings and inflated margins through highly questionable purchase price accounting. Samsonite should trade at a discount to its peers because of corporate governance concerns regarding its audit profile, dodgy related party transactions between the Company and Indian entities controlled by the CEO and his family, and CEO’s Ramesh Tainwala’s resume fraud of claiming to be a doctor when he is not."
Samsonite's stock price was down nearly 10% at the time of publishing.