Short seller Wolfpack Research issued a negative report Thursday on the telecom and technology company GTT Communications (NYSE: GTT).
The telecom is over-levered and has a "fundamentally broken" business that conceals a lack of organic growth and cash flow using non-GAAP metrics, the report said.
GTT Communications did not respond to a request from comment on the report from Benzinga.
GTT lost $71 million in 2017 and $243 million in 2018, according to Wolfpack's calculations, and generated organic growth of negative 8.7 percent in 2017 and negative 7.7 percent in 2018, the short seller said.
“Despite these awful metrics, senior management has received $37 million in bonuses because GTT’s compensation plan effectively incentivizes value destruction through indiscriminate acquisitions."
Notable known short seller Muddy Waters also tweeted that it is short GTT.
Congratulations to our partner firm @WolfpackReports on its first report! Based on their excellent research, MW is short $GTT https://t.co/Bn0rZuoh0C
— MuddyWatersResearch (@muddywatersre) June 6, 2019
GTT Communications shares were up 2.27 percent at $23.01 at the time of publication Thursday.
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