Citron Research: Why You Should Know Who They Are
Citron-Research is a stock commentary website that has been publishing reports for over 14 years. Today, the website has massed over 150 reports which are centered on fraudulent and terminal business-models. They have made it their goal to provide truthful information in an entertaining format about short-investments in large cap stocks.
The published content represents the work of a team investigators led by Andrew Left. Formerly StockLemon.com, the organization has employed investigators who collect information and expose companies that are overvalued or engaged in fraud. Over the past decade, the website has launched over 150 investigative reports against S&P 500 companies.
A few Asian companies have also fallen under the watchful eye of the researchers especially on accusations of pyramid-schemes, non working products and fraud. As a result of the investigations, Citron-Research has been sued countless times by multiple companies.
Who is the founder of Citron-Research?
Andrew is the leading investigator, founder of Citron-Research and renowned full time short-selling professional and editor. StockLemon.com was started in 2001 as a self publishing blog that hosts reports regarding controversial companies. In 2007, the website was rebranded to Citron-Research.
Andrew became active in short-selling while aged 24 years. This practice was boosted by boiler room scams which eventually went out of business. Edward proceeded to shorting securities from bulletin board scams where users would send out email blasts calling out investors to buy the assets before they miss out on a life changing opportunity.
He became president and CEO of Detour Media in 1999 where the company sued him afterwards. This led to the decision of switching to short selling assets full time and publishing free reports on companies which were found out to be overvalued or engaged in fraud.
How They Influence the market
After leaving Detour Media, Andrew began short selling securities full time. A team of investigators are employed which researches on businesses especially those with questionable investments. Their findings are published as reports on the website allowing readers to learn more about the businesses they are investing with.
It has been the mission of the short biased research firm to keep focus on the message and not the messenger. Information provided is truthful and is usually presented in an entertaining format to the public.
It has become a common practice for the investigators to release the reports which in turn results in the stock value of the investigated company to fall. As a full time short-stock dealer, the organization short-sells the companies engaged in fraud. Furthermore, they short-sell companies that have been mistakenly overpriced in the market and those that are suspiciously promoted.
One of the most publicized reports was on Valeant Pharmaceuticals. The firm published a report in 2015 accusing the company of channel stuffing as well as inflating drug sales. The report covered Valeant’s business-model which massively spiked the price of drugs it had acquired marketing rights from.
The 2015 report was followed by another on Philidor RX, a pharmaceutical distributor. As a result of the SEC investigation, Valeant shares dropped more than 90%.
In 2017, Exact Sciences was exposed as a company taking advantage of a “broken health care system”. According to the report, Exact Sciences has been pushing Cologuard to be the standard care when it comes to colon cancer screening. The truth as revealed by the investigators is that the company is actually losing money on a system that no longer works.
Citron Research has taken the role of Robin Hood for the general public. By releasing reports that identify fraud and their terminal business-models, the public has been able to learn the truth.
Furthermore, the reports have triggered an investigation by the SEC into the companies finally saving the public and investors from an accident waiting to happen. Thanks to the effect of the reports, Citron-Research has kept up with its mission – providing truthful information.