Shares in Samsonite continue to tumble after damming short seller report
Luggage maker Samsonite has had a second torrid day on the markets with shares plunging by more than 12 per cent.
Shares in the Hong Kong-listed company tumbled yesterday after a brutal report from hedge fund Blue Orca which accused it of massaging its numbers.
The report claimed Samsonite had “concealed slowing growth… massaged earnings and inflated margins”.
It said the business had a “history of mediocrity” and alleged “questionable accounting practices and poor corporate governance".
Samsonite hit back at the short seller in a statement saying the report was “one-sided and misleading” and its conclusions were “incorrect”.
The company said it reserves the right to take legal action against Blue Orca Capital.
Yesterday shares fell ten per cent by lunch time to 30.70 Hong Kong dollars before Samsonite asked for shares to be suspended.
Today its shares fell a further 12.38 per cent to 26.90 Hong Kong dollars.