Short-Seller Spruce Point Targets Leidos Holdings
Spruce Point Capital Management, an investment firm best known for its short-selling recommendations, on Tuesday warned that it sees mismanagement and potential fraud in Leidos Holdings (NYSE: LDOS) and forecast up to 60% downside risk to the company's shares.
Leidos, a government-services and IT provider with a $15 billion market cap, "wasted $1 billion" last year when it acquired the airport security business of L3Harris Technologies (NYSE: LHX), according to Spruce Point. The firm also notes that Leidos CEO Roger Krone once worked for Boeing, a company that has had its share of black eyes in recent years, and said Leidos "is concealing numerous product defects from investors."
Image source: Getty Images.
Source Fool.com
