Market Overview

Cliffside Research Sees 75% Downside In Professional Diversity Network

Cliffside Research Sees 75% Downside In Professional Diversity Network
Related IPDN
27 Stocks Moving In Thursday's Pre-Market Session
55 Biggest Movers From Yesterday

Professional Diversity Network Inc (NASDAQ: IPDN) shares fell 10 percent after Cliffside Research released a new bearish research note. Cliffside’s Strong Sell rating on Professional Diversity is mostly related to the majority stake that Cosmic Forward Limited (CFL) took in the company back in August 2016.

After doing some digging, Cliffside found that CFL shareholders are executives of Chinese company GNet Group.

According to Cliffside, GNet has been accused my Chinese newspaper Southern Weekly of scamming unsophisticated investors.

“GNet investors have taken to the streets to protest the company and have formed Internet forums to expose what some claim is a Ponzi scheme,” Cliffside says.

Related Link: New Cliffside Report Illustrates Why PCM Has 40% Downside

Cliffside suggests that in 2015, GNet used a British shell company called Gate Ventures to trick Chinese investors into believing GNet had gone public in London. Within four months, the shell company was de-listed.

Where there’s smoke, there is often fire, and Cliffside sees major downside to Professional Diversity if allegations against GNet are true.

“The $20 mil paid to IPDN could result in lawsuits from GNet investors who lost money, and IPDN’s current Chinese management team could face legal consequences including arrest,” Cliffside concludes.

Cliffside has set a $3.00 price target on Professional Diversity Network shares and believes even at the $3 level, risk is skewed to the downside.

Posted-In: Citron Research Cliffside ResearchAnalyst Color Short Sellers Short Ideas Rumors Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (IPDN)

View Comments and Join the Discussion!

Latest Ratings

CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Mid-Day Market Update: Nektar Surges After Positive Results From NKTR-181 Study; Cerulean Pharma Shares Drop

University Of Maryland's Non-Profit Initiative Is Changing Higher Education