Spruce Point Says Verint Systems Has 60-70% Downside Risk, Company Calls Short Report 'Deliberately Misleading'


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


New York based investment firm and short seller Spruce Point Capital Management issued a Strong Sell rating Thursday on the analytics company Verint Systems Inc. (NASDAQ:VRNT).

Verint faces 60-70 percent downside risk to approximately $17 to $25 per share due to what Spruce Point said is the market's misunderstanding of the company's flat-to-negative organic sales growth. 

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The metric is "obfuscated by frequent M&A, a 'beat-and-raise cookie jar' and aggressive accounting measures," according to Spruce Point's announcement. 

Verint responded to the short report Thursday with a statement that called it "self-serving" and said it's "inaccurate ... deliberately misleading and is intended to destroy shareholder value." 

Spruce Point said the market is valuing Verint like a high-growth SaaS company when it is in fact a slow-growing call center software provider. 

Verint shares were down more than 10 percent at $55 at the time of publication Thursday. 

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27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: NewsShort SellersSpruce Point CapitalSprucepoint Capital