Shares of Hong Kong–listed power tool maker Techtronic Industries fell almost 19% on Thursday after short seller Jehoshaphat Research published a report criticizing the company’s accounting procedures.
The report by the otherwise anonymous short seller, posted on Wednesday, alleged that Techtronic
669,
-18.97%
had been “inflating its profits” with “manipulative accounting.”
Approximately $5 billion has been wiped off Techtronic’s market value since the report came out.
The company, whose brands include Hoover and Milwaukee Tool, had already seen a sizable selloff earlier in the week, with the stock slumping by nearly 8% on Tuesday after its largest client, Home Depot Inc.
HD,
+0.27%,
warned of slowing demand for its do-it-yourself products and forecast a decline in profit this year.
Investors have been training their attention on short sellers, after allegations by short-focused hedge fund Hindenburg Research removed over $142 billion from Indian conglomerate Adani Group’s market value at the start of the year.
Techtronic Industries did not immediately respond to MarketWatch’s request for comment.
