Uxin Ltd (NASDAQ: UXIN) is having an incredibly strong start to the trading session this morning, and for good reason. The company issued a statement rebutting a short report that recently caused the stock to fall dramatically. Today, we’ll talk about:
- The rebuttal;
- what we’re seeing from UXIN stock as a result; and
- what we’ll be watching for ahead.
UXIN Stock Gains On Short Report Rebuttal
As mentioned above, Uxin is having an incredibly strong day in the market today after the company issued a rebuttal to the short report that was released yesterday. The announcement came via press release early this morning.
In the release, UXIN said that it believes that the declines that took place yesterday were caused by a report published by J Capital Research. In the release, the company said that the report contains “errors of facts, misleading speculations and malicious interpretations of events.”
The company went on to further state that it believes “that the allegations in the report were completely without merit.” The company went on to strongly condem the “publishing of false and misleading information.”
UXIN said continued to deny the allegations in the report stating that it falsified sales data. The Founder, Chairman and CEO of the company, Kun Dai, also confirmed that he has “never voluntarily sold any shares in Uxin,” yet another allegation that was made in the report.
The company went on to explain that it is moving forward with a thorough review of the report and that it will provide additional information when appropriate. The company closed with the following statement:
Uxin is committed to providing fair and transparent disclosure to investors and to rebutting any false claims that attempt to undermine confidence in Uxin’s business, management and operations.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Uxin, the news that was released today was positive.
After all, the short report led to mounting fears that the company falsified data and that the Founder, Chairman and CEO of the company was working against investors. In the press release, the company made it clear that this was not the case from their perspective and that it plans on providing further information ahead; alleviating investor fears.
So, it’s not surprising to see that excited investors are sending the stock for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:30), UXIN is trading at $2.90 per share after a gain of $0.95 per hsare or 48.72% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on UXIN. In particular, we’re interested in following the story surrounding the information that the company releases in rebuttal to the short report. We’re also interested in following the company’s continued work to expand its products, footprint, and value for investors. Nonetheless. We’ll continue to follow the story closely and bring the news to you as it breaks!
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