Grifols Shares Down 42% Premarket; Gotham City Research Report: Grifols SA: Scranton and the Undisclosed Debts; Said Grifols Manipulates Reported Debt & Ebitda To Artificially Reduce Reported Leverage To 6x Which We Believe Is Closer To 10x-13x
Portfolio Pulse from Charles Gross
Grifols SA shares plummeted 42% premarket following allegations that the company has been manipulating its reported debt and EBITDA figures. The report suggests that Grifols' actual leverage ratio may be closer to 10x-13x, significantly higher than the reported 6x.
January 09, 2024 | 9:47 am
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NEGATIVE IMPACT
Grifols SA's stock price has seen a significant drop due to allegations of financial manipulation, which could lead to a loss of investor confidence and potential regulatory scrutiny.
The sharp decline in Grifols SA's stock price is a direct result of the allegations of manipulating financial statements to underreport leverage. This could lead to a loss of investor trust, potential legal and regulatory consequences, and further downward pressure on the stock in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100