(BFM Bourse) – The electronic label specialist is regaining the confidence of the markets, the arguments formulated by Gotham City in the second part of its report were deemed to be unsound. Observers believe that the case could now run out of steam, for lack of a third act.
SES-imagotag is stabilizing after ending the week on a very high note. The title of the specialist in electronic labels, is moving up slightly to 116.60 euros on Monday, after recovering more than 30% on Friday. With still, of course, a long way to go to find the approximately 166 euros prior to the attack on Gotham City Research, on June 22.
The market nevertheless seems to have rallied to the cause of SES-imagotag, in the battle opposing it to the investment fund specializing in short selling, which accused it of accounting irregularities, which the French company has firmly denied. And in view of the latest elements published in recent days, the advantage now seems to go to the specialist in electronic labels. The latter published Monday morning a full and detailed response to the second part of the short seller’s vitriolic study.
>> Access our exclusive graphic analyses, and enter into the confidence of the Trading Portfolio
In a 15-page document, the French group “unequivocally rejects the second part of Gotham City’s inaccurate and deliberately misleading publication”, which has “deployed misleading and uninformed allegations and predetermined conclusions that attempt to cast doubt on governance and accounts of SES-imagotag”.
Friday evening, after the close of markets, SES-imagotag had already split a response to the new salvo of criticism from Gotham City, and to the second part of its vitriolic report which, according to the person concerned, “does not contain nothing more than the prosecution of false and deliberately misleading accusations”.
“As for the first publication published on June 22, SES-imagotag announces that this second part contains numerous and gross inaccuracies which have the sole purpose of manipulating and profiting from a possible drop in the action”, continues the company.
At the end of last week, the short seller had pointed out irregularities in the governance of SES-imagotag and had questioned “the independence of the members of the board of directors of the French group.
Move along, there is nothing left to see…
But the market was probably expecting more frank and concrete attacks, while this second volume does not provide any really brutal additional elements. On the Paris Stock Exchange, the surge in the title testified to the relief of the market after the latest accusations from Gotham City, with a title which therefore rose 31% at the close on Friday evening.
“The stock’s reaction was driven by very strong fears that we had only seen the tip of the iceberg in Part 1 and that Part 2 could have been explosive,” Invest Securities said. However, this is not the case “with mainly small things revealed (conflicts of interest, inconsistency, independence of certain members of the board of directors, errors / inconsistencies in its annual report)” continues the research office which argues that the case could under these conditions “run out of steam” while Gotham Research has not announced a part 3.
For his part, Stifel sees in this report “nothing sufficiently convincing” to make him change his mind. “Furthermore, as expected, the uncertainty is disappearing and investors are coming back,” adds the consultancy.
SES-imagotag took legal action in this case, in respect of the damage suffered. The electronic label specialist has notified the Financial Markets Authority (AMF) of the numerous breaches committed by Gotham City and has filed a complaint with the National Financial Prosecutor’s Office, in particular for the dissemination of false and misleading information.
Sabrina Sadgui – ©2023 BFM Bourse
Are you following this action?
Receive all the information about SES IMAGOTAG in real time: