Shares of Nano-X Imaging are down $4.57, or 15.9%, to $24.26 in pre-market trading after Carson Block’s Muddy Waters Research said that it is short the stock, joining Andrew Left’s Citron Research, which previously claimed in the firm’s own short report that shares of Nano-X Imaging are heading to zero. In Muddy Waters’ newly published report, the firm stated in part: “We are short NNOX because we think it is a much bigger piece of garbage than Nikola will ever be. There are important similarities, though. Nikola rolled a truck down the hill to try to prove it’s real. NNOX almost certainly used somebody else’s chest images to try to make its ARC machine look real…
But NNOX gets much worse. A convicted felon, who crashed an $8 billion market cap dotcom into the ground, was seemingly instrumental in plucking NNOX out of obscurity and bringing its massively exaggerated story to the U.S. NNOX touts distribution partnerships that supposedly amount to $180.8 million in annual commitments. Almost all of the company’s partnerships give reason for skepticism… If NNOX’s claims are achievable, it seemingly will come as a shock to most of the radiology profession. We interviewed five radiologists who were familiar with NNOX’s claims. Not a single one expressed credulity of NNOX. Four of the radiologists – without any prompting – compared NNOX to Theranos… We conclude that NNOX has no real product to sell other than its stock.”
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