Things are coming apart in a hurry for recent IPO and would-be medical device-making wunderkind Nano-X Imaging (NASDAQ: NNOX).
From IPO to last week's closing price, Nano-X shares soared 250%, but the stock got savaged by a short report earlier this week, and today it's getting hit again -- down 14.1% as of 11:14 a.m. EDT.
So what's going wrong for Nano-X this time?
It was noted short-seller Citron Research that labeled Nano-X "a stock promotion" and a likely $0 stock on Tuesday, but today, others are starting to glom on.
In particular, this morning Empire Financial Research's Whitney Tilson published a terse report agreeing with Citron that Nano-X looks like "Theranos 2.0." Although Tilson added no new detail to what Citron had already published, he did throw his reputation behind the short-seller, concluding that after reading the report, "there's no doubt in my mind that [Citron is] correct... and that this stock is worthless."
Is one analyst agreeing with another analyst the best reason for investors to subtract another 14% from Nano-X's stock market value?
Maybe not. But in the absence of any more effective rebuttal to Citron than the weak sauce Nano-X dished out yesterday, it appears even a mere "I concur" against Nano-X is enough to take this stock down today.
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