Amira Nature Foods Ltd. Skids On Short-Seller's Allegations?

Amira Nature Foods Ltd ANFI fell more than 25 percent after a short-seller said the company is "vastly overstating" its India revenue, in particular its core basmati rice sales.

Amira changed hands recently at $9.91, down $3.49.

Report Origins

The report came from Prescience Research Group, which has declined in the past to identify its principals or to explain much regarding its motives.

For the third quarter, which ended September 30, 2014, Dubai-based Amira, an Indian specialty rice producer, posted sales growth of 28 percent to $280.2 million.

Last week Amira reported 25 percent growth in preliminary fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization.

About 18 percent of Amira's 28.7 million shares outstanding were held as short interest as of January 15, and the company's current market capitalization is only about $385.71 million.

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Past Stock Falls Following Prescience Reports

Prescience most recently made news in August 2014 by denouncing Netherlands-based Chicago Bridge & Iron Company N.V. CBI for allegedly faulty accounting regarding a 2013 acquisition.

CB&I shares are down more than 37 percent since the allegations, but the drop appears related to declining oil prices rather than accounting flaws. CB&I provides infrastructure to the energy industry.

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