The two top small-cap decliners of the day were on the receiving end of negative coverage from popular investing site Seeking Alpha Wednesday. Both articles were written by authors using pseudonyms and a disclaimer was added saying that the stories may not be updated.
Farmland Partners Inc (NYSE:FPI) shares sank after a Seeking Alpha article claimed that the company was artificially increasing revenues. The company has been accused of making loans to members of its management team who then circle the cash back as rent. the story alleges that its 2017 earnings may be “made-up.” Shares of the farm real estate company fell more than 20% to US$6.91 in Wednesday morning trading.
Simulations Plus Inc (NASDAQ:SLP) released its fiscal third-quarter results, reporting earnings of US$0.13 per share on revenue of US$8.6mln. While its revenue surpassed analyst estimates, shares slumped after a Seeking Alpha article alleged that the software company would soon see a decline of up to 70%. The article claims that the stock price is not justified by its fundamentals. The company’s former CEO, Walt Woltosz, the engineer who developed the technology that allowed famed physicist Stephen Hawking to communicate, recently retired. Shares of the California-based company sunk more than 20% to US$18.15.
Neither company has issued a response to the Seeking Alpha articles as of the time this story was published.
AngioDynamics Inc (NASDAQ:ANGO) shares took a hit after releasing disappointing fiscal fourth-quarter earnings. The medical device company posted earnings of US$0.20 per share on revenue of US$88.3mln. Wall Street was expecting earnings of US$0.21 per share on revenue of US$89mln. The company sells surgical and diagnostic devices for the treatment of heart disease. Shares of the New York-based company were down more than 12% to US$20.
Asterias Biotherapeutics Inc (NYSE:AST) shares soared after a safety review committee recommended that the study of its cancer immunotherapy product continues. Its drug AST-VAC2 is an immunotherapy that targets tumor cells. The clinical trial will examine the effects of the drug on non-small cell lung cancer. Shares of the California-based biotech were up nearly 15% to US$1.77.
Achieve Life Sciences Inc (NASDAQ:ACHV) shares are up following a meeting with US Food and Drug Administration. The company discussed the next steps for bringing its smoking cessation drug cystine to the US market. Its Phase 2b trial will see if the number of cigarettes smoked while undergoing treatment is reduced. Shares of the Washington-based biotech jumped more than 30% to US$4.81.