Albert Fried Defends SFX Entertainment (SFXE) on Seeking Alpha Short Seller 'Hit Job'
- Wall Street closes rollercoaster week sharply lower
- Invesco (IVZ) Reportedly in Talks to Merge With State Street's (STT) Asset Management Business, Citi Sees More Cons than Pros
- FDA Votes "No" on Pfizer (PFE) Booster for 16+ Age Group, 2 Yes 16 No
- Jefferies Raises Price Targets on Alphabet (GOOGL) and Facebook (FB) as They Are Still Inexpensive Relative to Growth, Reiterates Snap (SNAP) as a Best Growth Idea
- Tesla (TSLA) Could Deliver 900K EV Units This Year and 1.3M in 2022 - Wedbush
Albert Fried & Company analyst Rich Tullo came out in defense of SFX Entertainment (NASDAQ: SFXE) calling today's Seeking Alpha article a Short Seller “Hit Job.”
Tullo said, "We place little value on the Seeking Alpha article and its anonymous author. Our view is investors have to view such Media
“Intelligence” as potentially sponsored by a short seller or even fraudulent."
"The fact is SFXE expanded top line by 3 fold over the last 12 months ending in June to $82 million from $27.4 million which
makes SFXE the fastest growing Company in our coverage universe." He continued, "The fact that SFXE expanded revenue by about 300% and Adjusted Cash Out-Flow (AOCF or EBITDA) expanded at a slower rate to roughly $21 million in 2Q14E from roughly $15 million in 2Q13A suggests to us there is potentially significant operating leverage in the SFXE model."
He added, "We think a short seller has planted the seed that Robert Sillerman’s $5 million share repurchase is meaningful when the reality is sellers may have driven the share price down $300 million on the lack of purchase. We think buying or selling shares solely on the management’s failure to buy $5 million worth of stock is an extreme emotional reaction
The firm maintained an Overweight rating and price target of $11.00.
Shares of SFX Entertainment closed at $4.28 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cathie Wood's ARK Buys Berkeley Lights (BLI) on Short-Seller Related Sell-Off, Trims More Tesla (TSLA)
- Diamondback Energy (FANG) Approves $2B Share-Buyback Plan, Analysts Bulled-up
- Arcus Biosciences (RCUS), Corvus Pharma (CRVS) Surge After AstraZeneca's (AZN) CD73 Results at ESMO - Bloomberg
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Short Sales, Trader Talk
Related EntitiesStock Buyback
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!