Citron Target on Alliance Data Systems Corp is
50% Near-Term Downside
This month Citron Research celebrates its 15th year of publication — exposing, for lack of a better term, “market inefficiencies”.
This neutral-sounding moniker is occasionally an accident … but rarely. Most often it exploits the shallowness of Wall Street’s “insight” with management’s intentional hype, misdirection or just plain fraud. It has become too profitable taking advantage of a bullish market environment to ever let the truth get in the way of a good story.
And then comes Citron Research
In the Case of Alliance Data Systems (NYSE:ADS), Wall Street is just now waking up to the misrepresentations that have been promulgated by ADS management. At best, this is a mis-categorized company which should immediately be priced 40% lower. At worst management is covering up a business that has an entirely different risk profile … and is one big credit event from derailing into a devastating downward spiral.