Why GrowGeneration Stock Is Tumbling Again Today
Shares of GrowGeneration (NASDAQ: GRWG) were tumbling 12.1% as of 11:03 a.m. EDT on Friday. This marked the second consecutive day of double-digit declines for the specialty hydroponic and organic gardening retailer's stock. Friday's drop came after short-seller Hindenburg Research published an online report that warned of a potential 70% downside for GrowGeneration's shares.
Hindenburg Research's online report made two primary knocks against GrowGeneration. It focused mainly on allegations about the company's management team's "extensive ties to alleged pump & dump schemes, organized crime and various acts of fraud." Hindenburg also stated that the picks-and-shovels cannabis stock trades at a frothy valuation, saying that "the stock is priced absurdly rich even under a best-case scenario."
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Source Fool.com
