Where now for NMC Health as share price tumbles?
Shares in the FTSE 100-listed hospital operator have fallen more than 30% since Tuesday, after US-based short-seller Muddy Waters waded in and accused the company of mismanagement and manipulating its balance sheet.
NMC Health has seen its share price tumble by more than 30% since Tuesday, after US-based short-seller Muddy Waters waded in and accused the company of mismanagement and manipulating its balance sheet.
NMC Health is trading at £17.50 as of 14:50 GMT on Wednesday.
Looking to trade NMC Health? Open a live or demo account with IG.
Muddy Waters takes short position against NMC Health
The US-based hedge fund Muddy Waters has taken a short position against NMC Health, after it expressed ‘serious doubts’ about the health of the hospital operator’s balance sheet and said that the company had ‘deliberately understated’ its debt by around $320 million.
‘We have serious doubts about the company's financial statements, including its asset values, cash balance, reported profits, and reported debt levels,' Muddy Waters said in a statement.
‘At the worst of times, the company has invested in large assets at costs that we find too high to be plausible – including from parties we believe are de facto under common control.’
'This behaviour gives rise to concerns about fraudulent asset values and theft of company assets.'
Short interest builds against NMC Health
Muddy Waters isn’t the only financial institution to take a short position against NMC Health.
AQR Capital Management has a 2.69% position against the stock, alongside PSquared Asset Management (1.10%), Portsea Asset Management (0.71%) and Gladstone Capital Management (0.51%), according to the Financial Conduct Authority’s daily short position report.
You can go long or short NMC Health with IG using derivatives like CFDs.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
