Corporate Travel Management (CTD) gets hit with negative research
Stock
Corporate Travel Management (CTD) $27.64 as at 29/10/2018
Event
The travel administration firm Corporate Travel will spend the first part of this week in a trading halt as it responds to a scathing research report by investment firm VGI Partners. The 176 page report names 20 ‘red flags’ that VGI have used to justify a heavy short position on the stock which until recently had experienced an uninterrupted climb since listing in late 2010. CTD has fallen -18.4% since it’s early September highs.
The report lists reasons such as low interest income, growth through acquisitions, ‘non-existent’ offices, suspect accounting practices with a long-serving auditor and high management turnover (except for the CEO & CFO) in its reasons for the negative view, as well as noting the significant number of management share disposals over the past few years.
Corporate Travel Management (CTD) Chart
Market Matters Take/Outlook
