A 'Toxic Byproduct of an Imperfect Higher Education System' — Famous Short Seller Known as 'The Assassin' Strikes Her Newest Target
Portfolio Pulse from Caleb Naysmith
Fahmi Quadir, known as 'The Assassin' for her successful short-selling strategies, targets Adtalem Global Education Inc. (NYSE:ATGE) in a new report, causing its shares to drop by as much as 23%. Quadir criticizes Adtalem for its reliance on federal tax dollars, calling it 'uninvestable.' Adtalem, previously known as DeVry University, has faced controversy before, including a significant student debt waiver for its graduates by the Biden administration. Adtalem's management refutes Quadir's claims, emphasizing their positive student outcomes and relationships with creditors and regulators.
February 08, 2024 | 1:59 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Bausch Health Cos. Inc. (NYSE: BHC), formerly known as Valeant Pharmaceuticals, is mentioned as a previous target of Fahmi Quadir. The company is not the primary focus of the current controversy.
While BHC is mentioned as a previous target of Quadir, the current news focuses on Adtalem. BHC's mention does not pertain to any new allegations or controversies, thus its short-term stock impact is likely neutral.
CONFIDENCE 75
IMPORTANCE 5
RELEVANCE 10
NEGATIVE IMPACT
Adtalem's shares dropped as much as 23% following Fahmi Quadir's critical short report. The company faces challenges due to its reliance on federal tax dollars and previous controversies.
The significant drop in Adtalem's share price following the release of Quadir's report indicates a strong negative market reaction. Given Quadir's track record and the serious nature of the allegations, investor confidence may be shaken in the short term. The company's defense may mitigate some concerns, but the immediate impact is clearly negative.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100