stock ticker: ARTC

As suspected by Citron Research in its initial report, the problems at Arthrocare had to be more systemic than first described.  Ergo, a note from one of their main “cheerleaders” — Lazard Capital Markets, who slipped out piece of research Friday after the close. Lowering their price target for Arthrocare, Lazard cited 3 concerns:

1. Reimbursement issues, (exactly as identified in the Citron report)
2. Arthorcare losing market share in the Opus shoulder division mainly due to increased competition and pricing. 
3. Arthrocare’s response – a claimed share buyback, according to Lazard “seemed aggressive” (“given the company’s current cash balance and free cashflow run-rate” – as pointed out by Citron — while still, in Lazard’s words is at best an “indirect” response to the reimbursement concerns at issue.

It remains Citron’s belief that Arthrocare has been losing market share and margins in its mainline divisions, which would be the motivation for their aggressive billing procedures in their spinal division. (more…)

stock ticker: ARTC

Introduction

Citron Research has been publishing stock information for close to 6 ½ years with a track record of remarkable predictive accuracy.   We are often asked what our “secret sauce” is.  It is simply critical thinking — not taking a company’s management for its word when their story defies logic.  Citron reports have been on the opposite side of some of the largest funds, investment bankers and their analysts, and renowned individual investors over that timespan. (more…)

stock ticker: RMDX

We are not going to beat around the bush on this one.  It is the opinion of Citron Research that RemoteMDX is nothing more than a brazen stock promotion.  There are too many red flags to be uncovered in one report, so Citron will do its best to deliver a “Readers Digest” version of a modern day promotion.

RemoteMDX  is a Utah-based remote offender monitoring company.  To understand RemoteMDX, you have to understand Biomune.  RemoteMDX was once a division of Biomune.  Most of the senior management at RMDX once came from Biomune, including CEO and Chairman David Derrick. (more…)