Why SmileDirectClub Stock Sank Today
Shares of SmileDirectClub (NASDAQ: SDC), a direct-to-consumer company producing clear dental aligners, were sinking 12.6% lower as of 3:30 p.m. EDT on Tuesday. Investors seemed unconvinced about the company's prospects despite a press release it issued Monday after the market closed, highlighting that 10 analysts initiated coverage on the stock with buy recommendations. This press release seems to have been made in response to a negative report about SmileDirectClub, published on Friday by short-seller Nathan Anderson.
There's certainly reason for investors to be at least a little skeptical about SmileDirectClub's trumpeting analysts' positive coverage of its stock: All 10 of those analysts participated in the company's initial public offering (IPO) last month. On the other hand, there's also reason to be skeptical about a report from a short-seller who stands to profit if SmileDirectClub's shares fall. But there's some truth in both positive and negative viewpoints on SmileDirectClub.
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Source Fool.com
