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.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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
Prices above are subject to our website terms and agreements. Prices are indicative only
