A little-known research firm took Mindray Medical down a peg or two last Thursday with a series of tweets accusing the Chinese medical device giant of fraud. Ottoman Bay Research's Twitter assault, linking to a report it has published, sent Mindray's stock ($MR) tumbling 11%.
Mindray fired back Friday, calling the report factually inaccurate and noting that its financials are audited by PricewaterhouseCoopers. According to Bloomberg, Mindray says it reserves the right to sue over the damaging allegations.
The rebuke helped Mindray recover some ground. The stock closed up 4.2% on Friday, and Bank of America raised its recommendation from neutral to buy, setting a $40 price target, Bloomberg reports.
There's not much out there on Ottoman Bay--and most of what is available concerns Mindray Medical. On its Twitter bio, the company describes itself as "deep-dive, bottoms up fundamental investors." The account that caused so much trouble has 63 followers. It has tweeted 21 times.
Ottoman Bay also outlined its accusations against MindRay in a post to Seeking Alpha. They include various kinds of accounting fraud. The presentation, titled "Fool's Gold," goes so far as to accuse Mindray of posting phony photographs of its headquarters.
- read the Bloomberg story
- here's the disputed report
- and that Seeking Alpha post