By Dhirendra Tripathi
Investing.com – Tecnoglass stock (NASDAQ:TGLS) fell 41% Thursday after Hindenburg Research raised red flags about the company’s founders and said it has a short position, which is a bet the shares would fall.
In a detailed report on the company, Hindenburg noted the stock has surged 390% this year, fueled by a pandemic-driven real estate boom in Florida. Tecnoglass makes glass for residential and commercial buildings.
But the short-seller said it was concerned about undisclosed related party transactions "that call the company's reported financial results into question."
A representative for Tecnoglass wasn't immediately available to comment.
Hindenburg said its months-long investigation includes review of U.S. and Colombian court records, securities filings, corporate registrations, property records, export records and media reports going back decades.
It said it has no faith in the company’s financials given management’s background and the irregularities it has uncovered. It called upon the auditor to do a full review of its customer transactions and outstanding balances.