MagneGas' Shares Tumble: Here's Why

Shares of MagneGas Corporation MNGA, a small-cap alternative energy company, tumbled more than 10 percent Monday morning following a scathing report by The Pump Stopper' on Seeking Alpha. MagneGas' stock has gained around 150 percent since the start of 2015 and hit a 52-week high of $2.50 on December 11. According to The Pump Stopper, an investigation into MagneGas' business practice reveals that its partners are "nonexistent, defunct or unviable." The report also noted that the company's auditor was barred by the SEC for "falsified and backdated audit documents." Finally, The Pump Stopper suggested that the company is merely an "imploding paid stock promotion shell" with an "immediate -92.90 percent downside risk."