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Cemtrex Plummets 30% On Critical Seeking Alpha Post; Company Calls Claims 'Malicious'

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Cemtrex Plummets 30% On Critical Seeking Alpha Post; Company Calls Claims 'Malicious'
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Cemtrex Inc (NASDAQ: CETX) shares plunged more than 33 percent Wednesday after a Seeking Alpha user published a report that said “all signs point to deception and failure.”

The author, a self-described activist investor named Richard Pearson, delineated corporate activity he deemed suspicious. Pearson alleged the company’s banker, Source Capital, quietly terminated its SEC and FINRA registrations after reported violations; that Cemtrex paid more than $1 million to stock promoters to boost share value; and that insiders sold undisclosed shares while prices were inorganically inflated.

Cemtrex wrote a press release in response to the “malicious blog post containing false and misleading information.”

“Cemtrex is preparing to take rapid legal action and asks that the SEC investigate these short sellers and their associates for stock manipulation and illicit gains,” the note read. “Cemtrex categorically refutes any allegations of wrong-doing by the Company, its directors, officers and management.”

It further asserted that CEO Saagar Govil and Founder Aron Govil had not sold shares in years, as confirmed in SEC filings.

Cemtrex stock was trading around $3.58, down 30 percent at the time of publication.

Posted-In: SEC Seeking AlphaNews Legal Movers Tech Best of Benzinga

 

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