It looks that way..
We previously reported how corporate governance specialist Eric Jackson from the Ironfire Capital Fund kicked the tires of ONP and gave it the green light. That was a couple of months ago when the shares were at $10+. They are now at $4.5.
Why? Well, the markets don’t help, but what certainly doesn’t help is what seems to be short and distort guys Muddy Waters attacking the company. We don’t have that report, but the reply from the company is swift and seems to certain to us on the main points to be wrong.
We don’t know that for certain, but Eric Jackson’s earlier work and the main issue of contention (the short and distorters claims about revenues being way lower actually applies to a company which has nothing to do with ONP, it isn’t the subsidiary they claim it to be) seems enough of a guarantee to splash in with a small amount.
Muddy Waters replied (somehow we were unable to open that link, perhaps someone can report back to us if they can open it), but we just cannot imagine that a company with a well known accountant (BDO) might have a subsidiary name mixup of this magnitude.
We might also point out that Muddy Waters did the same with China Fire & Security Group (CFSG), and were ultimately shown not to be right.