Focus Universal promotes itself as a tech company in the internet of things space but the reality is the company “is simply a tiny, unprofitable, reseller of hydroponics equipment and pays for a variety of stock promotion fueled by ‘sell-side equity research’ and paid articles,” short-seller White Diamond Research writes in a new report published on its website. The firm says Focus Universal’s revenues from its main business, the “mundane” reselling of hydroponics equipment sourced from a controlled company in China, plus installations of home cinemas, declined from 2020 to 2021. White Diamond expects the stock to trade like other hydroponic equipment retailers at two-times trailing twelve months revenue, which would be a $12M market cap and a 28c share price. Shares of Focus Universal are down 8% to $12.18 following the short report.
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