Casino plunges trading after the publication of a note from Muddy … – AGEFI

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         12/17/2015
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             Casino plunges trading after the publication of a note from Muddy Waters
              
         

         Casino he was the victim of an attack? The group led by Jean-Charles Naouri has suffered a heavy loss on the stock market Thursday after the release of a note from the US analyst maligned Muddy Waters, announcing his intention to “shorting” the title French group. A 17h share lost 13% after plunging nearly 20% during the session. A very heavy fall while the CAC40 was changing sharply since the opening, following the announcement of the rate hike by the US Federal Reserve.
“Casino Group is one of the companies the most overvalued and incomprehensible we met. (…) Its financial reporting are literally trivial to understand the (bad) financial health of the company. They do not distinguish what the company owns and what it owes ” , Muddy Waters wrote in his note entitled “Muddy Waters Casino Group is Short” . The analyst goes further by stating that the Casino boss reminds him “geniuses who founded the hedge fund Long-term Capital Management” , which collapsed in the late 1990. The analyst believes that the action Casino is worth only 6.91 euros while it usually evolves around 45 euros.
This attack comes at a surprising moment, Casino announced two days ago a debt reduction plan over 2 billion euros notably through real estate operations and disposals of non-strategic assets. “Casino was informed by an agency despatch released a report December 16, 2015 by the company Muddy Waters Capital, with the clear intention to harm the Casino, its employees and its shareholders,” responded the group, in which “This report includes dependents grossly erroneous allegations to which the group will provide detailed replies.” “Before the dissemination of misleading information, the Casino Group took the AMF and reserves the right to assert his rights before the courts, including the criminal courts,” he said.
 

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