Citron Goes After Energous: 'They Continue To Overpromise And Never Deliver'

Shares of Energous Corp WATT lost around 10 percent Friday morning, but the stock is still up more than 200 percent over the past week.

What You Need To Know

Energous develops a wireless charging technology called WattUp, which delivers power to devices like mobile phones through radio bands, similar to a Wi-Fi router. The stock was trading at around $9 on Tuesday but soared as high as $33.50 after the company received a certification from the Federal Communications Commission for its first-generation WattUp Mid Field transmitter.

Enter Citron Research

Short seller Citron Research said in a Tweet Friday morning that Energous has a "history of deception" and the recent FCC certification is "no different." Meanwhile, the company's technology is "not ready for prime time" and rival Powercast who also won an FCC approval will "expose" why the stock should trade back to $15.

Left told Benzinga he expects a secondary offering "as they continue to overpromise and never deliver."

"This [deception] is worse as they will not even specify how many watts they have been approved for by the FCC," Left said.

Meanwhile, Roth Capital Partners' William Gibson, was quoted by CNBC as saying in a Thursday note that "being first to market creates a meaningful competitive advantage to charging at a distance technologies." Naturally, Citron disagrees with the upgrade ans said it is "as [ridiculous] as their defense of Unipexel until [bankruptcy]."

Shares of Energous traded around $28.72 at time of publication, down 9.3 percent.

Related Links:

All The News That Has Energous Up 300% This Week

What iPhone's Wireless Charging Tech Means For Energous

Image credit: Energous WattUp Power Transmitter (TechCrunch, YouTube)

Posted In: Citron ResearchShort SellerWattUpWireless ChargingAnalyst ColorShort SellersShort IdeasTop StoriesExclusivesMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.