Post by
retiredcf on Feb 12, 2024 10:36am
BNN Notes
Fairfax pushes back: Fairfax Financial was targeted by short seller Muddy Water last week, and while the TSX-listed company pushed back against the allegations it was overvalued initially, the company spent the weekend reading over all 72 of Carson Block’s allegations and has come out with something a lot more full-throated on Monday morning. “We categorically deny and refute all of them, without exception, as false and misleading,” Fairfax said. The company’s statement on Monday says that instead of coming to the company directly or asking it questions via usual means, Muddy Waters chose to use the media to get its message out. “They may have successfully done this with other companies, but they have woefully misjudged the strength of Fairfax’s financials and prospects and we are confident the marketplace will reflect our strong fundamentals,” Fairfax said. The company’s shares fell almost 12 per cent on Thursday the day the short report came out, and while they rebounded a little on Friday and are poised to do so again on Monday, the whole saga makes the company’s next earnings report, scheduled for Friday of this week, a must-read. So, we will.