Tingo Group (NASDAQ:TIO) stock is taking a beating on Tuesday after the company was hit with a short report from Hindenburg Research.
Hindenburg Research says it is short on TIO stock and called out several problems it sees with the Nigerian company. That includes calling it an “exceptionally obvious scam with completely fabricated financials.”
Hindenburg Research also takes issue with several claims made by Tingo Group CEO “Dozy” Mmobuosi. That includes allegedly lying about creating the first mobile payment app in Nigeria, as well as the university he claims to have come from not having him on record.
Other problems include faked businesses. Among these are the proven false Tingo Airlines, as well as Tingo Group claiming to be a food processing company but not owning a single plant. Additionally, in April 2023 Tingo Group’s co-Chairman recused himself in a letter to the Securities and Exchange Commission (SEC) by resigning from the company.
Conclusion on TIO Stock
Here’s the closing statement from Hindenburg Research in its short report on Tingo Group:
“Tingo is a word in the Pascuense language of Easter Island meaning, “to borrow objects from a friend’s house, one by one, until there’s nothing left. For a company that did an otherwise terrible job trying to pretend to be a real business, it landed on an absolutely perfect name. We expect Tingo will not be long for this world—another cautionary tale.”
TIO shares are experiencing heavy trading today with some 34 million units moving as of this writing. That’s well above its daily average trading volume of about 4.5 million shares. The company’s stock is also down 57.5% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
