22nd Sep 2015 13:59
LONDON (Alliance News) - US-focused science and technology development and commercialisation company Allied Minds PLC saw its shares drop on Tuesday afternoon after New York-based hedge fund Kerrisdale Capital outlined the reasons for its short position in the company.
Kerrisdale said Allied Minds, which is a FTSE 250 constituent, has "no objective evidence of commercial success" in its portfolio and said its review of the company's subsidiaries "indicates that they are developing products that are, at best, minor variations on existing alternatives, often in the face of significant competition and without plausible business models."
In addition, Kerrisdale said the three commercial-stage businesses Allied Minds owns "have not been profitable and have no blockbuster potential."
Shares in Allied Minds dropped following the publication of the Kerrisdale report and were trading down 12% to 452.10 pence on Tuesday afternoon, having touched a low of 430.00p. Their 52-week range is 249.38p to 729.00p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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