Shares in fintech company Tingo have taken a hit after short-seller Hindenburg Research accused the company of overvaluing its holdings and relying on a “Ponzi-like” structure to pay dividends. The New Jersey-based holding company, which operates in Africa, Southeast Asia, and the Middle East, saw its shares drop by more than 53% to $1.20 following the accusations.
Tingo is the fourth target of Hindenburg Research so far this year, but it is a relatively smaller one compared to Indian conglomerate Adani Group, Jack Dorsey-led Block Inc, and Carl Icahn’s flagship Icahn Enterprises. The company’s units have ventured into agri-fintech, food processing, and insurance brokerage.
The accusations by Hindenburg Research have raised concerns about the company’s financial practices and have led to questions about the accuracy of its financial reporting. Tingo has yet to respond to the allegations, but the company’s management is likely to face increased scrutiny in the coming days and weeks.
As a journalist, it is important to verify information and sources before reporting on a story. In this case, the accusations by Hindenburg Research have been widely reported in the media, but it is important to note that the company has a short position in Tingo and may have a vested interest in seeing the company’s share price decline. It is important to consider all sides of a story and to report on the facts in an accurate and unbiased manner.
