Market Overview

Prescience Point Report Claims Celadon Group Is Worthless


Celedon Group Inc. (NYSE: CGI) shares fell more than 10 percent Wednesday after Prescience Point Research Group didn’t pull any punches in a new bearish note.

According to Prescience Point, more than 95 percent of Celedon’s reported tangible book value doesn't exist and the company is essentially worthless.

“CGI has used off-balance sheet entities (i.e. 19th Capital, JV with Element) and manipulative accounting practices to hide its insolvent condition from investors and creditors,” Prescience Point claims in the report.

After identifying what the firm alleges are inconsistencies in Celedon’s public financial filings, Prescience Point hired a third party forensic accounting firm too look into the company. According to the new 35-page report, Prescience Point now believes Celedon deceived shareholders and inflated its tangible book value by 71 percent.

Related Link: FleetCor Defended By Wells Fargo Against Citron Short Report: 'We Disagree With The Thesis'

In addition, Prescience Point claims Celedon used a sham Daylight Loan with a JV partner, questionable auditing practices and an inflated 19th Capital shareholder redemption to inflate its perceived book value.

“We hope that current and future investors and creditors familiarize themselves with the risks we have addressed and take immediate action to preserve the value of their holdings,” Prescience Point concludes. “We also hope that the NYSE, regulatory and law enforcement agencies and CGI’s auditor take necessary precautions in protecting investors.”

Prescience Point has a $0 price target for Celedon stock.

Latest Ratings for CGI

Apr 2020Wells FargoMaintainsEqual-Weight
Mar 2017Aegis CapitalInitiates Coverage OnBuy
Feb 2017Stifel NicolausUpgradesSellHold

View More Analyst Ratings for CGI
View the Latest Analyst Ratings


Related Articles (CGI)

View Comments and Join the Discussion!

Posted-In: Citron Research Prescience PointAnalyst Color Short Sellers Short Ideas Analyst Ratings Trading Ideas

Latest Ratings

OCXBTIGInitiates Coverage On5.0
GCMGWilliam BlairInitiates Coverage On
PDCraig-HallumInitiates Coverage On41.0
CAPLWells FargoDowngrades
MMPWells FargoDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at